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Analysts at BNP Paribas, Morgan Stanley and Citi are forecasting a stronger yen and a weaker dollar, citing safe-haven demand, Japan's improved growth and its large current account surplus. A stronger yen would make imports cheaper and work against the Bank of Japan's goal of raising inflation.
Most speculators have not yet positioned for the move, according to the report.
Expectations of a weaker dollar tend to support dollar-denominated commodity prices, which is a modest bullish signal for feed markets. The effect depends on how much the currency move actually materializes.
arabnews.comReutersFeb 28, 2018After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
