July 8, 2021
Daily FX Market Roundup 07.07.2021
By Kathy Lien, Managing Director of FX Strategy for BK Asset Management
Ask anyone and they will agree that economic activity in the U.S. is picking up with businesses enjoying a much needed post pandemic recovery. The airports were packed when I traveled to and from Hawaii last week with restaurants booked far in advance. The Federal Reserve recognizes this resurgence in demand and based on the last central bank meeting minutes, a growing number of policymakers think asset purchases need to be reduced sooner than anticipated.
Yet USD/JPY dropped below 110 as U.S. stocks and Treasury yields declined because incoming data suggests that the recovery may be weaker than feared and when extra unemployment benefits expire in September, demand could slow. Some will argue that allowing these benefits to expire will help fix labor shortage and allow some businesses to return to full capacity but research from the American Economic Review
Divergence in bankruptcy law across advanced and developing economies
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What Drove USD/JPY Below 110?
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What drove USD/JPY below 110?
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