What surprised the forex markets about the G7 statement was not its sentiment but the bluntness of the message. The reaction fx traders was to push the Japanese Yen to the major support level against the US Dollar at around the 115.00. The drop of 150 pips or so caught much of the currency market asleep. That stronger currencies from countries running surpluses to finance those in deficit, in order that the world economy should not seize up is a desire of the G7 is well known. But to come out and actually name China, is quite something. Could it be that we are finally seeing a return to saying what is meant, rather than dancing around the issue and leaving all mystified? The Governor of the Peoples Bank of China ( PBOC ) Zhou Xiaochuan immediately came out with a ‘mind your own business’ statement on the Yuan exchange rate, saying that “Each country is entitled to choose an exchange rate system consistent with its own economic development.” The rise in the Japanese Yen hit Japanese exporter firms, which in turn led to a 400 point fall in the Nikkei . The US Dollar is going to come under a lot of pressure this week with a slew of statistics which are likely to promote the theory that the Federal Reserve has only one more rise in the pipeline, and I‘m sure that there will be more stories doing the rounds that more countries will be looking to reduce the level of US Dollar assets held in reserves. Metals and Crude Oil are lower but still well above levels of a week ago.