Nomura Anticipates 3% Yen Decline Against Euro, Reestablishes Long Euro Position

Deep News08-14 21:30

Nomura International expects the yen to weaken by more than 3% against the euro by the end of September, and the firm has reopened a position, betting that the yen will erase all gains from intervention and fall to a record low against the euro.

Foreign exchange strategist Yusuke Miyairi has restarted a tactical EUR/JPY long trade at 183.90, a level close to the current market price, with a target of 190 by the end of September and a stop-loss set at 181.

Two weeks ago, a joint U.S.-Japan intervention in the currency market bought yen, pushing the euro against the yen from roughly 187 down to 180; the pair has now recovered 50% of that decline.

Miyairi's forecast anticipates the euro breaking above the April high of 187.95. In a research note, Miyairi stated that although he expects the Bank of Japan to raise interest rates next month, such a move is unlikely to boost the yen.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment