The biggest mover this week in percentage terms was NZD/JPY. It was a one-way trade down nearly 300 pips and no retracement was larger than 60 pips.
It’s not uncommon to see large, swift moves lower in this trade as carry trades are unwound. At times, tumbles in NZD/JPY are fore-runners to larger problems in the global economy but jittery investors also sometimes jump the gun.
The decline has been sustained for several weeks and nearing 8% so far in May.
The fall in May mirrors a similar move at the same time last year when worries about Europe first escalated. If support in the zone around 57.00 breaks, it’s fair to say that this year’s worries about global growth are more severe.
