September 7, 2012
Geronimoooo!!! The yen got triple roundhouse kicked by its counterparts yesterday thanks to a broad-based rally in high-yielding currencies. EUR/JPY rocketed by 98 pips, while GBP/JPY enjoyed a nice 110-pip boost. Why did the yen react so strongly against its counterparts?
One possible reason is that there were no economic reports scheduled for release in the Land of the Rising Sun. With Japan’s docket empty for the day, traders found it easy to dump the yen once risk appetite surged in markets.
If you haven’t been keeping tabs, you should know that it was a combo of good economic data from the U.S. and an optimistic bond-buying program by the ECB that inspired a broad-based risk rally.
Only the leading indicators data at 5:00 am GMT is scheduled for release today, so you might want to pay attention to any possible market-moving reports from the other major economies. More specifically, keep your eyes on the big U.S. NFP report coming up at 12:30 pm GMT, which could determine if the Fed is launching its QE3 program next week.
"The only cable I watch is the pound baby."