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Stock impact report

Yen Intervention Risks Force Tokyo Traders to Scrap Holidays [BNN Bloomberg (Canada)]

Mitsubishi UFJ Financial Group, Inc. (MUFG) 
Company Research Source: BNN Bloomberg
Japanese authorities likely stepped into the foreign exchange market to support the embattled yen for the first time in a year and a half on April 29, a local holiday, and probably did so again Wednesday in US hours. Traders are bracing for possible repeat performances on May 3 and May 6, when Japan will be on Golden Week holidays. May 6 will be especially closely watched because the London market will also be shut for May Day. That will likely reduce liquidity in the currency market, something that tends to exaggerate exchange-rate moves. Japanese authorities may also act if closely watched US jobs data on Friday bolster the dollar and further drag down the yen. “The possibililty of more intervention during Golden Week is high,” said Takuya Kanda, head of research at Gaitame.com Research Institute. “Caution will be especially strong on the 6th as there's the risk that the dollar will strengthen against the yen in reaction to US jobs data” on Friday, he said. The ruined holiday Show less Read more
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