Archived IMT (2009.02.16)

Yen withstands the global sneeze as the currency maintains strength despite the 3.3% contraction in Q4 GDP after the G7 statement omitted the issue of yen strength. The JPY chart in the FUTURES SPECULATORS SECTION in the WEBSITE shows the number of contracts of yen longs relative to USD shorts at the Chicago Mercantile Exchange slipped last week to a net 43,597 contracts, down from 50,518 contracts the prior week. Considering that the figures stand below the all time high of 65,920 reached in April 2008, the yens current strength is partly underlined by lack of Japanese appetite into foreign stocks and bonds following the destruction of capital wealth of the past 2 years. Also boosting the yen is the anticipated rate cuts in the UK and Eurozone, as well as prolonged zero rates in the US.