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HISTORICAL DETAILS
% Change
1 Wk -1.54%
1 Month -2.00%
3 Months -4.32%
6 Months -4.43%
1 Year -9.59%
52 WEEK
High 88.50
Low 76.25
BLOOMBERG MEDIAN FORECASTS
Q2 2011 83.00
Q3 2011 83.00
Q4 2011 85.00
Q1 2012 86.50
DAILY DETAIL
USD/JPY seems to be at a very interesting juncture, with a strong move in either direction likely in the short to medium term. All eyes are on the US debt ceiling debate, and as it currently stands, both Reuters and CNN are reporting that a deal is not particularly close, and that the debt ceiling debate will drag on. Meanwhile, ABC news in the US went one step further and said ’it doesn't look like President Obama will get the "grand bargain" to raise the debt ceiling and avoid default.‘ UK publication, The Independent, wrote an interesting piece entitled ‘Everything Changes in Global Financial Markets If There’s a Credit-rating Cut’, which does a good job at putting into perspective how global equities, US yields and subsequently the USD will fare if we see a ratings agency downgrade. The fear of a potential downgrade to the US will invariably keep the USD offered in the short term until we get some clarification on whether it will be resolved before August 2. In Asian trade, the pair has oscillated between 79.30 and 78.96. While the pair has seen some consolidation in the last couple of sessions, we are still at historically a low level, and a trading range of 78.44 and 80.00 is certainly on the cards this week. Chris Weston, Australia
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