The Yen will strengthen on the Chinese Yuan revalation.
I understand that a strengthening of the Yuan will be good for a strong AUD, well may only be for a few weeks then forgotten, that is fine, BUT why will the Japanese become stronger and the USD become weaker when the Yuan is revalued stronger as the press is widely reporting now?
Is it that the Chinese will need to buy less USD now? It is one step closer to be freely floated and being one of the major currencies? Will it spark off risk appetite?
Ok, the real question is what about he YEN, a truly bizar behaving currency for the last few years. Why is the Yen going to benefit from a stronger Chinese Yuan? Will it be a spike or a sustained shift? This is the big question on my lips, why? This is the question I am most interested in do discus here please.
Please can you separate the difference when replying to USD/JPY rising and Yen rising, USD/JPY rising is Yen weakening, please make sure the reply is clear in this regard.
Below are some links for your information.
Headline:“Yen retreats after rise on Yuan talk”: TOKYO, April 9 (Reuters) – “The yen retreated on Friday on selling by short-term players on the view that the currency's rise the previous day on talk of a near-term yuan revaluation was overdone.” By Satomi Noguchi
Out of interest the Yen across the board strongly rose the day before on Yuan revaluation was very imminent.
http://www.reuters.com/article/idUST...pe=usDollarRpt
“If and when China revalues their currency, they will most likely opt for a one time appreciation of 2 to 4 percent along with a wider trading band. Considering that some people still estimate the Yuan to be undervalued by as much as 40 percent, this is a small concession for China who has been reaping the benefits of an artificially weak currency for decades. As for the currency market’s reaction, a revaluation would be negative for the U.S. dollar and positive for the Japanese Yen. “ By, Kathy Lien FX360
http://www.fx360.com/commentary/kath...spx#headline01
There is also some interesting questions posted by readers below this, with no real answers.
I look Fwd to your thoughts on why the Yen will strengthen.
I understand that a strengthening of the Yuan will be good for a strong AUD, well may only be for a few weeks then forgotten, that is fine, BUT why will the Japanese become stronger and the USD become weaker when the Yuan is revalued stronger as the press is widely reporting now?
Is it that the Chinese will need to buy less USD now? It is one step closer to be freely floated and being one of the major currencies? Will it spark off risk appetite?
Ok, the real question is what about he YEN, a truly bizar behaving currency for the last few years. Why is the Yen going to benefit from a stronger Chinese Yuan? Will it be a spike or a sustained shift? This is the big question on my lips, why? This is the question I am most interested in do discus here please.
Please can you separate the difference when replying to USD/JPY rising and Yen rising, USD/JPY rising is Yen weakening, please make sure the reply is clear in this regard.
Below are some links for your information.
Headline:“Yen retreats after rise on Yuan talk”: TOKYO, April 9 (Reuters) – “The yen retreated on Friday on selling by short-term players on the view that the currency's rise the previous day on talk of a near-term yuan revaluation was overdone.” By Satomi Noguchi
Out of interest the Yen across the board strongly rose the day before on Yuan revaluation was very imminent.
http://www.reuters.com/article/idUST...pe=usDollarRpt
“If and when China revalues their currency, they will most likely opt for a one time appreciation of 2 to 4 percent along with a wider trading band. Considering that some people still estimate the Yuan to be undervalued by as much as 40 percent, this is a small concession for China who has been reaping the benefits of an artificially weak currency for decades. As for the currency market’s reaction, a revaluation would be negative for the U.S. dollar and positive for the Japanese Yen. “ By, Kathy Lien FX360
http://www.fx360.com/commentary/kath...spx#headline01
There is also some interesting questions posted by readers below this, with no real answers.
I look Fwd to your thoughts on why the Yen will strengthen.