“There is a growing realization that the Chinese move last week was not as huge as some interpreted it to be. Now people have worked out that it is not that significant a move.”
“The question is: Is it economic recovery or government spending [that has boosted the yen recently]? I tend to think it's the latter. There is little incentive to buy Japanese stocks at the present time, and really, little incentive to buy yen.”
“Without fresh good news on the U.S., the current account worries come back to the fore so people worry about the dollar. With stocks it's a question of how much good news is already priced in.”
“All the market is talking about is Katrina, what it means and is the Fed going to pause. It's just relentless at the moment, it's just dollar selling.”
“It was a knee-jerk reaction after the reports of an earthquake. The logic behind the move is that a natural disaster in California could damage the U.S. economy.”
