The greenback continued falling yesterday, with the yen ranked among the main gainers, despite the recent recovery in risk sentiment and the reappointment of BoJ Governor Kuroda for another term. For GBP-traders, UK retail sales for January and PM May’s meeting with German Chancellor Merkel take center stage.
USD Continues to Tumble; JPY-Traders Shrug off Kuroda’s Reappointment
The dollar continued its slide against the other G10 currencies yesterday. The main gainers were CHF, GBP, and JPY, in that order. With the upside surprise in Wednesday’s CPIs and the expectations for a fourth Fed hike this year failing to provide support to the currency, we believe that the path of least resistance remains to the downside. The Japanese currency was once again among the main gainers although developments overnight and the broader risk environment should have worked against it.
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