CIBC AM: Yen Intervention Will Create Shorting Opportunities

Deep News
01/26

CIBC Asset Management stated that intervention in the yen will make establishing short positions in the currency attractive, as any rebound is unlikely to be sustained. "Typically, intervention is fighting against the tide of fundamentals, and in the current situation, Sanae Takaichi's fiscal policy is not helping. This applies to both Japanese government bond yields and the yen," said Michael Sager, the company's Head of Multi-Asset and Currency Management. "The weekend's developments will provide a better opportunity for shorting. Traditionally, intervention always offers better entry levels, rather than signaling a fundamental change in direction."

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