The G7’s agreement on joint action to push the yen lower has, so far, had the desired effect, reversing much of this week’s gain for the yen and boosting equities in Tokyo.
As the market begins the process of second guessing the G7’s coordinated action to keep the yen lower, High Frequency Economics is warning investors the damage caused by the disaster in Japan is being both understated by the government and underappreciated outside of people in the immediate vicinity.
Knee-jerk reactions to catastrophes often fall wide of the mark, Stephen King, chief economist at HSBC told CNBC.
Here's what you should be watching Friday, March 18.
Better news from the Japan crisis today, as the nuclear power company Tepco appears to be on track to complete a power line to the Fukushima nuclear power plant this afternoon Tokyo time.
Ahead of the teleconference of G-7 finance ministers and central bankers on the yen, traders wait to see who will intervene in the markets.
Japan will get what it wants from the Group of Seven teleconference of finance ministers and central bankers Thursday night, but G-7 sources say the group is still waiting for Japan to ask.
Many players are convinced that this evening’s conference call of G7 finance ministers and central bankers will set the stage for major selling of the yen by the Bank of Japan in order to weaken it. But the market is divided on whether other major central banks will join in with coordinated intervention.x
"Until investors know the extent of the damage and nuclear fallout in Japan, the only certainty in the capital markets is that uncertainty will prevail," one strategist says.
While we await the outcome of the nuclear disaster in Japan, we could be witnessing a structural change in the global financial markets.
The emotional investor roller coaster is on hyperdrive as the nuclear situation in Japan remains unknown. With 2011 gains wiped out and now the Yen soaring the markets wait to see if the central banks will intervene.
Traders point to Japanese investors repatriating assets as a significant cause of the yen's dramatic rise. Really?
This week's market action has left a lot to be desired. But given everything that is going on, we should probably be thankful. After falling some 4-5% from its recent highs, the S&P 500 remains in positive territory for the year.
The yen rocketed to a postwar high against the dollar late Wednesday, and the market's showing little sign of calming today. It's time for your FX Fix.
As Japan’s nuclear crisis intensified Wednesday, governments across Europe remained at odds over whether to scale back nuclear power programs or continue plans to expand, reports the New York Times.
It was a mixture of historical technical levels and algorithmic trading that rocketed the yen to an all-time high of 76.25 against the dollar Thursday, according to Thanos Papasavvas, head of currency management at Investec Asset Management.
Here's what you should be watching Thursday, March 17.
The world economy is still very fragile and the impact of the Japanese earthquake and the nuclear crisis is distressing, Stephen Roach, non-executive chairman at Morgan Stanley, Asia, told CNBC in an interview.
The complexity and uncertainty surrounding Japan's nuclear crisis has created a great divide between investors who are now running from risk and those who think they can ride it out.
The yen rallied to a new all-time high against the dollar as traders speculated G-7 central bankers may be getting ready to intervene to drive the currency lower.