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9 Sep 2013
Tokyo wins 2020 Olympics bid, confidence boost for 'Abenomics'
FXstreet.com (Barcelona) - Tokyo won the 2020 Olympics bid, winning a final round of voting by International Olympic Committee (IOC) members in Buenos Aires, and coming ahead of Istanbul by 60 votes to 36.
Earlier on Friday, we saw a sell-off in the Nikkei 225, with some talk referring to the fall due to profit-taking ahead of the weekend Olympic host winner, which undoubtedly contributed to the slide in USD/JPY, only exacerbated after the mostly in-line NFP result.
USD/JPY opened with a significant 60+ pips gap up with the highest interbank quote being reported at 99.91 from a NY close at 90.06, only to start the official retail trading hours at 99.66. According to Eamonn Sheridan from Forexlive, we should expect "this announcement effect to fade."
As Bloomberg reports, the Olympics win may boost infrastructure spending and economic recovery, noting: "Tokyo’s win may boost construction and tourism stocks and give a lift to consumer confidence, playing into PM Abe’s plan to revive the economy."
Earlier on Friday, we saw a sell-off in the Nikkei 225, with some talk referring to the fall due to profit-taking ahead of the weekend Olympic host winner, which undoubtedly contributed to the slide in USD/JPY, only exacerbated after the mostly in-line NFP result.
USD/JPY opened with a significant 60+ pips gap up with the highest interbank quote being reported at 99.91 from a NY close at 90.06, only to start the official retail trading hours at 99.66. According to Eamonn Sheridan from Forexlive, we should expect "this announcement effect to fade."
As Bloomberg reports, the Olympics win may boost infrastructure spending and economic recovery, noting: "Tokyo’s win may boost construction and tourism stocks and give a lift to consumer confidence, playing into PM Abe’s plan to revive the economy."