12 March 2002, 11:42 Forex - Majors rangebound in early London trade ahead of Japanese pension news
LONDON (AFX) - Major currencies were rangebound in quiet early
trade, with most immediate attention focusing on the investment
announcement from the Japanese Government Pension Investment Fund,
dealers said.
The GPIF is due to announce its investment plans for the coming
year this morning and there are growing indications that a large bulk
of it will be allocated overseas.
"That could be negative for the yen even though the flow won't
happen for a couple of weeks and won't happen all at once," said Ian
Stannard, currency strategist at BNP Paribas.
Commerzbank's Patrick Bennett agreed that the amount the fund
proposes to shift offshore will garner most attention but doubts there
will be a major currency move on the back of the announcement.
"There has been significant focus on the announcement and it would
take a major surprise to move markets," he said.
Elsewhere, the major currencies were rangebound, though there will
be some interest in fourth-quarter euro zone GDP numbers later. Though
a 0.1 pct contraction is expected, BNP Paribas' Stannard said the
interest will lie in the detail, in particular what's happening with
consumption and investment.
"It could put the euro under pressure," he said.
Meanwhile, sterling remained rangebound ahead of industrial
production and manufacturing output data that are expected to show a
marked improvement.
A disappointing result could push sterling lower, said Rob Hayward,
currency strategist at ABN Amro.
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