Posts Tagged: JPY

The previous trading week has been dominated by an increasingly good sentiment which has known quite an expansion at the end of the week. This risk appetite has had quite a negative effect upon safe-haven currencies throughout the week, causing the most damages to the US Dollar which is already in a difficult situation due to the fact that banks all over the world are doing their best in keeping the value of the currency low so that the global economic crisis does not have so many bad consequences upon their economies.

Friday was the first day when the US Dollar started to grow a little, suggesting the fact that the risk appetite sentiment may be over. This growth has also been correlated with the fact that the European concerns are not yet totally over and with the fact that the fundamental data concerning the US showed some positive figures. The US manufacturing PMI grew from 50.8 Read more »

As the situation in the European Union continues to get worse, with the sovereign debt concerns spreading towards other week countries in the EU, the trading market continues to suffer. Risk aversion started to make a new appearance on the market, despite the fact that traders have tried to ignore their concerns for a few days. This has had a negative impact upon the risky currencies which have fallen this week, but it has definitely been in the favor of safe-havens, which have managed to grow due to this new wave of risk aversion.

The Japanese Yen has been growing throughout the week due to these concerns related to the sovereign debt crisis. This growth is especially related to the surging borrowing costs of the European countries which have had the effect on the trading sentiment, causing traders to let their concerns influence their trading once more. Moreover, as it is true that there are not so Read more »

The situation in Europe seems to be getting worse, increasing thus the sentiment of risk aversion which started to show again at the beginning of the trading week despite of the fact that it had turned at the end of the previous week. These new concerns have been caused by the increase of the bond yields in some countries and to the bad economic news. If we are to look at the situation at the moment, it is quite obvious that the European Union’s leaders will not be able to contain the sovereign debt crisis especially as financial markets are reacting accordingly.

The element which has determined the increase of the risk aversion feeling is the increase of the bond yields in the Eurozone. It is true for Italy, whose bond yields have continued to grow even though the European Central Bank has actually purchased some of the country’s bonds during the previous week in order to Read more »

The previous week has been dominated by risk aversion, but, at the end of the week, traders’ risk appetite started to grow a little as concerns about Europe seemed to calm down on expectations that the situation in Europe is going to improve once new leaders are going to be chosen. But it seems that this week has brought a new turn on the trading sentiment, causing traders to fell risk aversion once more. This is also related to the concerns related to Europe, which have had a powerful impact on the financial markets today, causing not only banks, but also stocks to retreat. The Italian and Spanish bond yields rise and, as it seems that there is no solution for the problems in Italy, it may be time for the European leaders to start considering taking measures in Spain. Of course, not forgetting about Greece as the country continues to be faced with difficulties.

This situation Read more »

There are a lot of concerns dominating the trading market at the moment and, as we have seen during the previous days, there are some currencies which have lost territory due to these concerns. But, despite of the fact that the situation in Europe continues to remain just partially solved, it seems like traders are experiencing a cautious optimism which has led to the growth of some of the most important currencies around the world.

The Japanese Yen is one of the currencies which grew today based on the fact that investors are seeking for safety as a result of the concerns related to the Greek bailout and to the spreading of the debt crisis to other European countries such as Italy, Spain and Portugal. Moreover, traders feel even more concerned due to the referendum which is expected to take place in Greece, which could have a negative outlook, leading thus to the default of the Greek Read more »

Despite the decision taken during the Group of Twenty summit concerning the solutions to the European sovereign debt crisis, it seems that the situation in Europe is not yet solved as the fundamental data indicates the fact that the European Union’s economy has worsened. This piece of news has increased the concerns relating to which the Eurozone’s problems are too difficult to be solved in the near future.

It seems that even the German economy, one of the Europe’s most solid economies, has been suffering. The retail sales in Germany have increased by only 0.4 percent during September, after the 2.7 percent fall registered in August. Economists were expecting a growth by 1.1 percent, so this is quite a disappointing figure. The problems in Italy seem to have gotten worse, increasing investor’s concerns. The unemployment rate in Italy has grown to 8.3 percent in September from the 8.0 percent registered in August. According to Eurostat, the unemployment Read more »

Even though the situation in Europe seems to have found a temporary solution, it seems like traders continue to be concerned regarding the ways in which the global financial crisis is going to evolve. This has caused an increase in demand for safe-haven currencies, which has immediately had a positive effect upon the US Dollar. The Japanese Yen would have also benefited on this trading sentiment if it weren’t for the Bank of Japan’s intervention.

The US Dollar started to grow today against most of its major counterparts based on the concerns related to the further evolution of the global financial crisis. This has all been caused by the fact that traders started to get concerned relating to the fact that the solution proposed by the European leaders last week are under no circumstances long-term solutions for the crisis. Even though the concerns about Greece started to fade a little, traders are now concerned with the evolution of Read more »

There have been lots of changes on the trading market after the announcement regarding the decisions taken at the Group of Twenty summit regarding the European sovereign debt crisis. The Euro jumped immediately afterwards and continues to have a positive trend although we cannot be sure for how long as the decisions taken by the European leaders seem to have positive results only on short term. However, this affected other currencies as well, such as the Swiss Franc and the Great Britain Pound, which have had a rather surprising evolution, gaining against some currencies and losing against others.

The Swiss Franc has gained on the problems in Europe since the beginning of the crisis because the currency was known to be a safe-haven. At the moment, it is rather difficult to continue to consider the Swiss Franc as a safe-haven due to the decision taken by the Swiss National Bank of pegging the currency to the Euro. This Read more »

The results of the Group of Twenty summit have had an influence on today’s trading as well. The meeting did not bring so much news related to the solutions the European leaders are going to take in order to solve the sovereign debt problem because Angela Merkel and Nicolas Sarkozy have already said that the final decisions are going to be made public on the 3rd of November. This is also probably due to the fact that the European officials no longer want to influence the trading sentiment more than it is necessary.

This decision has had a powerful impact upon the market as traders suddenly turned to risk aversion, causing safe-haven currencies to grow some more and riskier currencies to lose ground. One of the currencies that took advantage of this risk aversion is the Japanese Yen which managed to score gains against most of its major counterparts today. The Japanese Yen especially grew against the US Read more »

It seems that there have been some misunderstandings between France and Germany on the matter of the EFSF today, which have caused some problems concerning the sovereign debt crisis solutions. The European leaders have stated, at the end of the day, that these discussions have been solved and that the two countries are now in full agreement. The basis of the discussions has been the measures which should be taken in order to solve the bailout issue in Europe. The bailout facility is absolutely necessary in order to prevent the sovereign debt crisis from spreading. The situation has been made worse and the concerns grew in regard to the recent downgrade of Spain’s credit rating.

The recent news regarding the disagreements between the French and the German representatives have caused traders to get scared and to believe that there are chances for the European leaders not to achieve a solution this time either. This piece of news Read more »