As the US markets remain closed, Japan presses forward with stimulus in a week that should have been dominated by the USD.
It is hard to concentrate on the financial markets with Hurricane Sandy dominating most news fronts as it blows through NY and surrounding areas, leaving one of the most developed places on the planet on its knees. US markets have been closed the past couple of days, although it is possible that they will reopen for trading tomorrow. We have seen oil fall, partially due to the Hurricane, and the USD has lost some of its edge in a quiet market with some ‘extremely risk-adverse’ investors pulling away. With US Consumer Confidence, Manufacturing and Non-Farm payrolls at the end of the week, we expect Forex to be at full pace shortly.
European figures look worse, as expected with German unemployment and Eurozone confidence weakening. There is Canadian GDP out tomorrow, with the forecast showing a slightly softer number than previously reported. The BoJ and Japanese Government have begun various stimuli to kick-start Japanese exports, which has brought the Yen back into the spotlight. Many expect to see the Yen weaken, although we all know how resilient the East can be.
Thoughts are still with those in NY as they now face the challenges of repairing what Sandy has left behind. (JKM)