Eur/usd and Usd/jpy impacted very Little by Oil Price Fluctuations

Eur/usd and Usd/jpy impacted very Little by Oil Price Fluctuations


Quotes from Societe Generale Cross Asset Research:
-EUR/USD and USD/JPY have been impacted very little by oil price fluctuations (less than 0.40 over the past three months); correlation levels have been insignificant. The major determining factors for the EUR/USD currently include the euro debt crisis, fragile signs of recovery in the US, and ECB and Fed policies.
-These forces tend to offset each other, which explain the relatively weak moves in the exchange rate, although downward pressure seems to have the upper hand in the absence of positive, credible news regarding the debt crisis.
-Regarding the USD/JPY, risk aversion fuels yen buying flows, which continue to be held back by deteriorated Japanese fundamentals, fear of intervention by the BoJ and expectations of more aggressive monetary policy. As a result, the exchange rate has continued to appear paralysed

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