Yen behaving badly? I personally think so!

Positive news from Mervyn King, the Bank of England Governor, following the unemployment and inflation figures due out on Wednesday could see an upswing. Until then, GBP will be trading in a fairly narrow range.

Yen behaving badly?

I personally think so - but not so according to the G7 meeting over the weekend.

Forecasters had predicted that the weekend could prove difficult for the Japanese officials following their currency devaluation but the consensus was that the recent decline in the yen was simply a by-product of Japan’s attempt to beat its deflation problem.

In doing so, this has effectively opened the doors to further US Dollar gains and yen losses. USD/JPY 101.58 now, how much further before officials agree that a 30% decline in 6 months is excessive?

Trending on Twitter and LinkedIn this week was Sir Alex Ferguson’s resignation. Hailed as ‘the great leader’, one question being asked in the financial markets was not how the team would be effected post the Fergie era, but the all to immediate one of how will the share price fare?

Well, on the day it was announced, in typical Man U style it, temporarily lost ground then in extra time came back to wipe out the losses.

Who knows how this will develop over time with their new man at the helm?  I suspect a lot will depend on what happens on the pitch.”