“Decades of current account surpluses show Japan, Switzerland and Norway to have the largest claims on foreign assets. Those on the wrong side of the ledger remain Australasia, the US and most recently the UK following the recent switch to net FDI outflows in the UK.”
“If we are correct with our call for a more challenging Late Cycle investment environment, expect the JPY to enjoy many more days similar to those seen in the middle of August when it looked like the PBOC was de-valuing the CNY.”
“Expect the JPY to perform well on the crosses in 2016, with our favoured trades being short AUD/JPY and also short CNH/JPY. The latter looks largely an avenue to express a negative trade on USD/JPY, but could also surprise were the PBOC to accede to a strong USD environment and let USD/CNH rise.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.