Once we do get the end of quantitative easing, it will be some time before we get an end to zero interest rates. |
People are assuming that as an oil exporter, they're going to be diversifying away from the dollar. They may be positioning in case any foreign assets are frozen. |
People are holding their breath for U.S. numbers later today. |
Right now it's all about the speculation that Japan will end its quantitative easing. |
Since Watanabe made comments that's when the reversal started and it seems to be breaking higher against the dollar. |
The market is starting to talk about 4.75 percent and the risk of the Fed perhaps moving to five and even beyond. |
What we're seeing right now is the market take a bit of a breather. One thing we've seen in the past two days is yen weakness against the crosses and that probably has to do with the fact that the yen sell-off in the past week or so has been the sharper move. |