Tuesday, December 31, 2013

FX Subdued on the Last Trading Day of 2013

FX markets were surprisingly subdued going into the last trading day of 2013. The Nikkei was closed, which allowed USDJPY to consolidate gains (below 105.50 resistance) around the 105.00 level. The pullback in JPY weakness was unexpected in light of lower US Treasury yields (10-yr 2.97%) and broad USD weakness.



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