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Mid-Day Report: Yen Rally Continues as Risk Pulls Back Following US GDP Disappointment

January 27th, 2012 | Add a Comment

Yen continues to strength in early US session in otherwise ranging market as risk rally pulls back following GDP disappointment. Q4 GDP in US showed 2.8% annualized growth, strongest pace in 1.5 years but missed expectation of 3.0%. DOW opened lower today and remains pressured at the time of writing. USD/JPY dips further to as low as 76.76 so far while GBP/JPY is also heading back to 120 level. As noted in prior reports, DOW is facing strong resistance from 2011 high at 12876 and is vulnerable for a pull back after the rally since December. When that happens, USD/JPY could possibly be dragged below key near term support of 76.55. Euro is relatively steady after solid Italian bill auction. Italy sold EUR 11b of six-month bills today at yield … Read entire article »

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