Posts Tagged: Yen

The European currency slipped in Asian Trade, moving away from a seven-week high period against the Greenback and a 7-1/2 month high against the yen before the ECB meeting. The European Central Bank is expected to keep rates at 0.75% in the meeting of Thursday. Investors analyze to see if the President of ECB Mario Draghi will be willing to cut borrowing costs in the future. Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi stated the following: “Ahead of the ECB meeting, the dollar and yen are being bought back after the euro’s rise.” The outlook for the yen was discredited due to the expectations of pressure received on the BOJ (Bank of Japan) to take easing steps after the elections of 16th of December. The latest Japanese polls show Shinzo Abe as favorite to win.

Deputy of BOJ, Kiyohiko Nishimura stated on Wednesday that the ECB is likely to debate if the monetary easing in September Read more »

The European currency managed to improve its position against the dollar in the last six weeks after the extension of Greek’s debt and the falling of the borrowing costs for the euro zone countries. Analysts state that Euro is likely to gain more in yields on Spain and Italy’s bonds drop lower. The European currency increased with 0.2% to $1.3083, the highest level since the 22nd of October. Traders state that if the currency succeeds to break above the $1.3100 level, it can stop loss buy orders. The head of FX research at Commerzbank stated the following: “We have had a general upward trend in euro/dollar for quite a while and people are looking at news in the euro zone like the debt buyback by Greece.” Greece’s buyback exceeded the market expectations and improved the chances of cutting the debt and receiving other financial aid.

Although the dollar is considered a refuge in these times of financial Read more »

The yen dropped to the lowest level in the last six months against the dollar. The prospects of the Japanese elections expected the next month will transfer power to the opposite party that pleads to an aggressive monetary improvement. The greenback managed to gain against 16 other currencies as a report stated that the cost of living increased the previous month at a slow pace. Japan’s currency began to destabilize its level to a two-week low against the euro. The GBP has dropped to a 10-week low level against the greenback, as shown in the UL retail sales.

Jane Foley, senior currency strategist at Rabobank International in London stated the following: “The leader of Japan’s opposition is coming down quite heavily, saying what he would like the Bank of Japan to do in terms of easing and that’s pressuring the yen. The U.K. retail sales tie in with a gloomy outlook for the U.K. economy and that Read more »

Thursday, the yen managed to reach a four-month low level on the Japanese importers selling the currency. The rest of the major currencies remained steady as investors looked to crucial events in the USA such as the job reports on Friday and the elections on Tuesday. The greenback increased its level to as high as 80.13 yen and recovered the lost territory after the easing of the Bank of Japan on Tuesday and going to a four-month high level of 80.38 on last Friday.

The dollar rose to as high as 80.13 yen, fully recovering the lost ground on disappointment after the BOJ’s easing on Tuesday, and inching towards the four-month high of 80.38 hit last Friday. It last stood at 80.07 yen, up 0.4 percent on the day. Minori Uchida, chief FX strategist at the Bank of Tokyo-Mitsubishi UFJ stated the following: “Those who just trade on news headlines sold dollar/yen after the BOJ. But the Read more »

The yen succeeded to strengthen its position against the dollar and has reached the strongest level in the last week as the second round of easing of the Bank of Japan disappointed investors. The Bank of Japan stated after the policy meeting today that it developed the asset-purchase program by approximately from 11 trillion yen to 66 trillion yen. The demand for the yen currency as a refuge asset increased substantially as the tropical storm Sandy ravaged the entire American Northeast coast. Also, the pound increased against the dollar before a report forecast showed that the UK retail sales rose.

Head of the Japan foreign exchange research at Nomura Securities stated that the 10 trillion increase of the yen seems as a minimum expansion and that the failure to reach 15 trillion is a high disappointment for markets. Also, he declared that the yen is being purchased as a result of the damages created by Sandy. The Read more »

The yen weakened 80 against the dollar for the first time in the last three months. There are signs that the yen is close to contraction as fanned speculation that the Bank of Japan will bring more impulse. The dollar has managed to maintain a gain of 8 days against the yen, which is considered the longest streak in the last seven years. The US provided two-year notes that rose to the highest level since June against the Japanese peers that attracted money to the dollar-based assets. The Australian dollar had 3 days of losses before the data forecast showed that the level of inflation was the slowest in 13 years, which lead to a cut of the borrowing costs provided by the Reserve Bank.

The Japanese lawmakers apply pressure to the Bank of Japan in order to loosen the monetary policy stated Derek Mumford, the Director of Rochford Capital, a currency risk-management company. Mumford also declared that Read more »

The Dollar Index achieved a one month high after the debt of Spain was cut off. The euro currency has a weak position against most of its counterparts before Italy has to sell bonds today among the deep economic crisis in Europe. The Australia’s dollar has strengthened its position after the country added workers since May. The yen has recorded a rise although the rest of its rivals have declined.

Europe has shared the currency at a low level of $1.2826 and wasn’t seen at this level since October 1. Was traded as $1.2837 and has decreased 0.3 % from yesterday. This analysis leads to the conclusion that the dollar has reached a higher level. The fiscal outlook in Spain can lead to a fall to a junk status of the currency.

The Dollar Index is used to pursue the dollar against the major currencies. Today, the DXY has reached a level of 80.205, a level Read more »

The recent situation in Europe and the US has increased the risk on the Forex market. Markets are falling, currencies are losing ground, and investors are no longer attracted by risky situations. On this grounds, the Japanese Yen started to gain territory as the traders have been attracted by safe-haven currencies. The Yen is not the only beneficiary of this growth, as the Swiss Franc registered record grows as well.

The concerns related to the sovereign debt crisis have made rating agencies take the decision of downgrading the ratings of some countries and of putting under surveillance the one of other countries. The agencies have also warned about the decision they will take, such as labeling the Greek rating to the default level in the situation of the bonds rollover and as considering downgrading the US credit rating. As speculation indicates that the Federal Reserve is to embark on another round of quantitative easing, the Japanese Yen Read more »

Asian stock markets opened higher today. NIKKEI started the day at 9,443.32, previous close was 9,411.28. HANG SENG opened at 21,800.50, previous close was 21,695.30. Hopes for Greece aid deal is helping Asian stock markets to recover their recent loses. Citigroup Inc. raised its rating on Japan’s auto sector to “neutral” from “bearish”. Japan Trade Balance data came in at -¥853.7 billion. According to the Ministry of Finance, Japan’s economy remains fragile after the natural disaster hit the nation. On the other hand, some crucial parts of the economy, such as industrial output, have recently started showing signs of improvement.

Asian trading session started with USD strength against CHF, GBP and AUD. JPY is almost flat against EUR and rising against AUD by the time of writing.

This week we still expect that Greek headlines are likely to dominate all markets. We also expect markets to remain volatile for the rest of the week. Besides, investors are Read more »

Asian stock markets opened higher today but bearish outlook remains. NIKKEI started the day at 9,443.32, previous close was 9,411.28. HANG SENG opened at 21,971.24, previous close was 21,953.11. Even though the analysts were thinking that 9,400 support will hold, the investors are cautious as global economic growth is slowing and Greece’s debt problems are getting worse. Analysts said concern about tax hike is also affecting the market. The Mainichi newspaper reported that the Democratic Party is considering to raise both corporate and income taxes by around 10% to repay new government bonds for funding the reconstructions needed.

Asian trading session was almost flat during early hours but later USD bulls started to show some strength again. AUD, GBP, EUR and CHF are falling against USD by the time of writing.

Of course the main reason behind USD strength is that the fears of a Greek default. Everybody is so concerned about Greece defaulting and the effect that Read more »