There will further suspicion that the US authorities will quietly encourage dollar depreciation to help ease trade concerns and US comments on exchange rates will remain very important. Overall, the Japanese authorities are likely to bank on private dollar demand and importer US currency buying to defend the 105.0 level, but a rapid decline through this level would still be likely to provoke intervention. The most likely outcome is that the US currency will eventually strengthen through the 105.0 level towards 103.5. The dollar was subjected to further selling pressure on Friday, despite firm US data, and the dollar ... (full story)