It was another quiet morning across Forex for the most part. The spot Dollar Index continued to trade just south of 100.00, while the December contract, which has a premium of around 25 ticks, was yet again unable to clear resistance around 100.25. Ahead of tomorrow’s UK budget, sterling was steady around 1.3100 against the US dollar. So far this month, the GBP/USD has ranged between 1.3200 and 1.3000.
Meanwhile, the Japanese yen was a touch stronger across the board. The yen has been very weak of late as the Japanese government has put together a large programme of fiscal stimulus, which more than offsets the likelihood of a small rate hike from the Bank of Japan. But markets are preparing themselves for the possibility that the Ministry of Finance may intervene to support the yen.
Some have speculated that it may happen this week, particularly as FX will be relatively quiet over Thanksgiving. Others believe that the USD/JPY may need to hit 158.00, or even 160.00, to trigger intervention.
Source: TN Trader
