The yen's rise is more fragile than the euro's ...Middle East

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The yens rise is more fragile than the euros

The Japanese yen and euro have both chalked up impressive year-to-date gains of around 12% against the US dollar, Bank of America argues that the yen's rise is more flimsy.

BofA notes:

    The yen's rally has been disproportionately driven by speculative positioningThe euro's rise has been more persistent than JPY's across daily market regimesGerman fiscal expansion is a unique euro driverStructural outflows from Japan have fallen off the market radar

    They note that a currency deal between the US and Japan is a tail risk but that's something that Kato downplayed earlier today.

    This article was written by Adam Button at www.forexlive.com.

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