While the Japanese yen did not beat out the US dollar today, the low-yielder did gain across the rest of the majors on Monday as deleveraging remains a key theme in the markets.
However, according to the latest forex correlations report, the once-famous correlation between the USD/JPY, G10 carry trade, ad the DJIA has since faded. That said, [B]there is potential for the Japanese yen crosses to plummet, with the exception of USD/JPY[/B]. Indeed, USD/JPY is trading on the whims of the greenback and will likely continue to do so within the next week of trading.
[B]For coverage on the [/B][B][B]Hong Kong Dollar[/B][/B][B] and [/B][B][B]Singapore Dollar[/B][/B][B], check out John Rivera’s [/B][B][B]Asia Emerging Market Daily[/B].[/B]