Intraday Market Thoughts

Yen a Minority as Abe Heads for Majority

by Ashraf Laidi
Jul 18, 2013 19:00

GBPJPY adds 200 pips less than 24 hours after charting the fundamental and technical case for the pair in our Premium Insights. Japanese PM Abe's LDP is set to gain majority in the Upper House, with the help of its junior coalition partner New Komeito party. But what is simple majority vs outright majority? And what is a sufficient margin for protracted declines in the Japanese currency?  We answer all these questions in today's Premium Insights as both of yesterday's USDJPY longs hit all targets. Meanwhile, US Philly Fed survey hits 2-year highs and US jobless claims at 2-month lows, helping to firm up the greenback. We issue 2 new longs in GBPJPY alongside 2 new trades in USDJPY as we outline the mechanics of Sunday's Upper House elections. EURJPY (2), USDCAD (1), USDCHF (1) and AUDUSD (1) trades are also in progress, which all can be accessed in the Latest Premium Insights.

Act Exp Prev GMT
Initial Jobless Claims (JUL 12)
334K 345K 358K Jul 18 12:30
Continuing Jobless Claims (JUL 6)
3114K 2959K 3023K Jul 18 12:30
Philadelphia Fed Manufacturing Survey (JUL)
19.8 7.8 12.5 Jul 18 14:00

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