The nerves for the Brexit keep the pound under pressure, while the yen is rocked by the scandal of Abe

The nerves for the Brexit keep the pound under pressure, while the yen is rocked by the scandal of Abe

Dollar expected inflation data in the US.

The week has started quiet in the foreign exchange market, the euro / dollar consolidating abrupt lurches of recent days around $ 1.23. The action has moved to the pound, which is carried away by the pre-summit between London and Brussels later this month news, and the yen, which has been affected by the political storm that hangs over Japanese Prime Minister Shinzo Abe.

The risk appetite spurred purchases on Monday in the British currency, which managed to exceed $ 1.39 for the first time since last Thursday. In addition, the currency was underpinned by the comment of Minister Brexit, Robin Walker, who showed his optimism about the fact that Britain and the European Union (EU) are very close to reaching an agreement to implement the Brexit. However, nerves have limited purchases and cable (pound / dollar) Tuesday falls back towards $ 1.3880.

Talks to be developed in the Belgian capital on 22 and 23 March will be key to the next stage of leaving the country bloc and analysts expect the pound to see significantly affected by any news about it. In addition, experts point out that there is a lot of noise around the British currency, with investors discounting a 70% chance that the BoE will raise rates at its next meeting, also on 22 March.

THE YEN AFFECTED BY THE SCANDAL Shinzo Abe

The dollar again resume its advance against the yen, after the political scandal surrounding the prime minister of Japan has encouraged purchases, in anticipation of the ‘Abenomics’ come to an end. The US currency also advances in the index which measures its performance against a basket of six rival currencies on a day when US inflation data expected.

The ‘Greenback’ is changing hands near 107.00 yen after the Japanese currency has managed to overcome more than 0.5% against the dollar to a session high at 106.30 yen, at a time when doubts hover “over Abe’s ability to take the helm at a crucial time for Japan both economically and politically,” said Boris Schlossberg, an analyst at BK Asset Management. “Japan’s economy seems to be finally coming out of its deflationary nightmare decades, while at the same time faces geopolitical risks with North Korea,” he adds.

For about a year, rumors had circulated that Abe and his wife Akie Abe, had favored a group of the education sector to seize these government properties. So far, however, he had managed to dodge the issue and was on course to become the longest-serving prime minister in office. But pressure has increased on the Japanese president after it has emerged that the economy minister, Taro Aso, altered several documents passed parliamentary procedures, eliminating their own name, Abe and his wife.

This information could blow up your options to maintain leadership in the Liberal Democratic Party in the primaries held in September. Usually, the prime minister assured of getting the necessary support to keep the party presidency in this type of voting, but the case of prevarication could force him to decline repeat in front of the Japanese Democrats and invalidate for a third term as prime minister country.

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