7 Feb 2014
Flash: Pick up in risk appetite allows further USD/JPY upside - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, has turned more optimistic on the prospects for global risk appetite.
Key Quotes
"We continue to see global risk appetite on a firmer footing, albeit still precariously balanced, ahead of the US payrolls report. A strong number is probably better for emerging markets and US equities on the basis that if the Fed is likely to plough ahead with its taper better it do so with the background of a resilient US economy."
"We are not seeing conditions ripe for major break-outs, but without fresh concerns over large emerging markets like China, there is room for a further recovery in USD/JPY. CAD looks precariously balanced failing to recover as much as most other commodity and EM currencies recently and more vulnerable to weaker US and Canadian employment reports."
Key Quotes
"We continue to see global risk appetite on a firmer footing, albeit still precariously balanced, ahead of the US payrolls report. A strong number is probably better for emerging markets and US equities on the basis that if the Fed is likely to plough ahead with its taper better it do so with the background of a resilient US economy."
"We are not seeing conditions ripe for major break-outs, but without fresh concerns over large emerging markets like China, there is room for a further recovery in USD/JPY. CAD looks precariously balanced failing to recover as much as most other commodity and EM currencies recently and more vulnerable to weaker US and Canadian employment reports."