Forex Flash: G20 appears to be JPY non event - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that with the G20 meetings proving to be a non-event for the JPY, USD/JPY strode higher on Friday with the pair ending higher past 99.50 by late NY, with the yen also weakening across G10 space.

Elsewhere, he sees that other majors relinquished intraday gains on USD, to end flat to slightly lower. On other fronts he adds that GBP was sabotaged after rating agency Fitch downgraded the UK´s rating from AAA to AA+. Looking ahead, he notes that apart from the Yen story, markets may continue to nurse the slightly shaken commodity markets (note continued Copper weakness on Friday), a nthe commodity/growth-linked currencies this week, pending further cues from economic releases (US, UK GDP). He writes, “On this front, look to the HSBC flash PMI for China due on Tuesday (note the IMF’s vote of confidence for the Chinese economic recovery late last week) and European PMIs later in the week.

On the Central Bank front, the RBNZ is expected to keep its benchmark interest rate unchanged at 2.50% on Tuesday. However, the spotlight may then swing to the BoJ meeting on Friday, with the central bank expected to release its half-yearly revisions to grown and inflation projections. He finishes by commenting, “Specifically, markets will be on the lookout for the much touted 2% inflation target. “