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Hardy: Why you should focus on the Yen
FX markets are pretty nervous at the moment and it seems like the Japanese Yen is the biggest beneficiary of uncertainty. John Hardy, the Head of FX Strategy at Saxo Bank, says there's a real risk-off sentiment given a potential government shutdown in the States and political instability in Italy.
Shinzo Abe, the Japanese Prime Minister, is due to give a speech on Tuesday. Analysts are wondering whether we'll get more information about a controversial sales tax, a possible corporate tax break and whether there'll be any more economic stimulus. This comes at a time when technical levels are being tested.
John says trading in this environment is tricky. Using the options market is one way to trade the yen against the dollar. He also says euro:yen is interesting given that we're due to get policy announcements from the European Central Bank on Wednesday.
01:37 minutes
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