JPY remains the cheapest currencies of the majors - BNZ

Jason Wong, Currency Strategist at BNZ, suggests that it was a deadly quiet start to the trading week, with little to report other than yesterday’s strengthening of the Yen.

Key Quotes

“The move down seemed to coincide with much stronger than expected trade data, with the surplus rising to its highest level in six years, making a mockery of Japanese official’s pleas for a weaker yen. On a real exchange rate basis, the yen remains the cheapest currencies of the majors and has been for some time, despite its strong appreciation this year. The market knows this and has been happy buying yen for much of the year, despite the BoJ pumping up its monetary base.”