The yen has been trading violently against major and minor crosses, which, of course, is to be expected. But, what’s unexpected to some is the subsequent dollar weakness.
“I am totally stumped by the weakness of the dollar vs. the EUR. It makes no sense to me. I understand completely why the Yen is strong; repatriation efforts will be enormous through the month’s end, and this is the end of the fiscal year, but the strength in the EUR is senseless,” Dennis Gartman told me this morning.
My currency friends across the pond, however, aren’t so perplexed. They look beyond Japan the meeting of euro leaders of Friday, which decidedly surpassed low expectations.
“I am not stumped by USD weakness at all versus EUR; the market is an impatient but superficial beast: easy to appease (at times) easy to aggravate (at other times). The situation today falls into the former category,” Stephen Gallo, head of market analysis for Schneider Foreign Exchanged told me.
As we saw on Friday, Japan is the big story, but it’s not the only one for markets.
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