Saxo Bank Releases New Asian Focus Video
Released on: November 03, 2011, 4:51 am
Author: Saxo Bank
Saxo Bank has released new Asian Focus video featuring Andrew
Robinson, correspondent for Saxo Capital Markets, analysing the effect
of the Bank of Japan's latest yen intervention and the sustainability
of further actions before year end. He also commented on the Reserve
Bank of Australia's decision to cut rates, the first flow of PMI data
in Asia and the noise surrounding the Chinese leader's visit to Europe
Japan's Finance Minister Jun Azumi put his money where his mouth was with
unilateral intervention to weaken the yen. This is the third intervention this year
with estimates suggesting it is the largest one of the three. So far it has had the
intended effect with the USDJPY holding at around the 78.0 level. History however
shows that it could be a longer term struggle to keep it there as after the previous
two interventions this year it took only about five days for the rate to drop back
to pre-intervention levels. Concerning other action it is unlikely the Bank of Japan
will instigate other measures like a trading floor for the pair, similar to the
Swiss National Bank’s action, Andrew said.
The timing of the intervention ahead of the Group of 20 leaders initially took the
market by surprise but in hindsight as Finance Minister Azumi had in recent weeks
spoken almost daily about the problem of the strong yen it was ultimately only a
matter of time before the Bank of Japan took action.
Meanwhile the Reserve Bank of Australia cut the official interest rate by 25 basis
points for the first time since April 2009. Whether this is the beginning of a whole
series of cuts or just a one-of is another story though and will depend largely on
the development of the local economy and the degree of uncertainty globally. How
effective the passing on of the cut by commercial banks to consumers will be on
their spending behaviour will also remain to be seen.
Monthly Purchasing Managers Index data in the Asian region paints a mixed picture
about the health of the manufacturing sectors with most attention on China and
somewhat different stories being told by the official Chinese data and private
sector equivalent report.
China is also drawing attention from its leader Hu Jintao's visit to Europe during
the lead up to the G-20 summit. Expectations are increasing that China will commit
to supporting the European Financial Stability Facility but any announcement is
hardly likely to occur before the G-20 meeting.
Further information and additional forex videos can be
found at videos.saxobank.com.
About Saxo Bank:
Saxo Bank is a leading online trading and investment specialist, enabling clients to trade forex, CFDs, Stocks, Futures, Options
and other derivatives. The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable
SaxoTrader and the SaxoMobileTrader application are available in over 20 languages.
Saxo Asset Management accommodates high-net worth private clients and institutional
investors. In 2011 Saxo Bank continued the diversification of its business and
launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with
offices throughout Europe, Asia, Middle East, Latin America and Australia.
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