Nomura Asset Management warn that USD/JPY may drop to 100 as early as next month, highlighting politics and policy factors
- If talks over the U.S. debt-ceiling reach a deadlock
- Or the Federal Reserve appears to waver on raising interest rates
That's according to Shigeki Sakaki, chief strategist at Nomura Asset Management, highlighting that:
- Yen short positions are near their highest since January 2014
- "Speculative yen-short positions are extremely high and the yen could be placed under tremendous pressure to strengthen if these are unwound"
- "I've been expecting the dollar to fall to around 100 yen by the end of the year but it could happen much faster, possibly by September"
via Bloomberg
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Dates to watch:
- Next Federal Open Market Committee meeting is September 19-20
- The US Treasury Department has warned Congress must raise U.S. debt ceiling by 29 September to avoid a default
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ps. No sign of much of anything so far today ;-) :
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Nomura Asset Management oversees $435 billion of investments
