While the Japanese yen did not beat out the US dollar today, the low-yielder did gain across the rest of the majors on Monday as deleveraging remains a key theme in the markets.
However, according to the latest forex correlations report, the once-famous correlation between the USD/JPY, G10 carry trade, ad the DJIA has since faded. That said, there is potential for the Japanese yen crosses to plummet, with the exception of USD/JPY. Indeed, USD/JPY is trading on the whims of the greenback and will likely continue to do so within the next week of trading.
For coverage on the Hong Kong Dollar and Singapore Dollar, check out John Rivera’s Asia Emerging Market Daily.
