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11 Nov 2014
Yen’s weakness helps boost domestic returns - SG
Kit Juckes, Global Head of Currency Research at Societe Generale comments on Japan’s current account surplus beating expectations, with falling Oil prices aiding trade balance.
Key Quotes
“Asian news saw Japan’s current account surplus beat expectations at ¥414bln.Falling oil prices will help the trade balance, while the yen’s weakness is already helping to boost domestic returns on the country’s foreign assets.”
“The FX market didn’t react to that however, but to the combination of slightly higher US yields and another high in equities.”
“A fall in consumer confidence is a reminder if needed that higher equity prices and inflation expectations alone won’t solve Japan’s problems and the USD/JPY uptrend remains intact. And with it, the disinflationary pressure on Japan’s neighbours.”
Key Quotes
“Asian news saw Japan’s current account surplus beat expectations at ¥414bln.Falling oil prices will help the trade balance, while the yen’s weakness is already helping to boost domestic returns on the country’s foreign assets.”
“The FX market didn’t react to that however, but to the combination of slightly higher US yields and another high in equities.”
“A fall in consumer confidence is a reminder if needed that higher equity prices and inflation expectations alone won’t solve Japan’s problems and the USD/JPY uptrend remains intact. And with it, the disinflationary pressure on Japan’s neighbours.”