The Japanese yen declined today against the other major currencies as the stock markets corrected after the yesterday’s fall and the yen became too overbought.
The traders also expect a worst in 30 years business confidence index to be reported by the Bank of Japan tomorrow. The yen is currently losing largely against the euro as the market participant believe that the European Central Bank will state that it will stop reducing rates after the next cut, which expected to be announced this week (April 2).
Some analysts go as far as saying that the lower business confidence index that will be reported tomorrow will push the yen out of the list of «safe haven» currencies and, lacking the higher interest rate, it will be the major Forex outsider in the near future. Of course, if the confidence index is reported at a reasonably better value, the yen may go up significantly.
USD/JPY rose from 97.43 to 98.32 as of 9:07 GMT today. EUR/JPY advanced from 128.63 to 130.64 today, while GBP/JPY went up from 138.97 to 140.38
Thursday, April 2, 2009
Pound Gains as House Prices Rise
The British pound rose today against the other major currencies as the house prices demonstrated growth for the first time since October 2007 in United Kingdom this March.
The market participants expected that the March report on the nationwide house prices in Great Britain will show a continued decline on the recessing economy. They were wrong as the report showed 0.9 percent month-to-month growth (and still 15.7 percent year-to-year decline) after the February’s 1.9 percent slump. It added some positive to otherwise rather pessimistic pound’s trend.
Although there can be seen other factors in the current pound’s growth — like the decline in risk-aversion, the analysts point at the housing release as the primary reason. The pound is extremely dependent on the domestic real estate sector.
The market participants expected that the March report on the nationwide house prices in Great Britain will show a continued decline on the recessing economy. They were wrong as the report showed 0.9 percent month-to-month growth (and still 15.7 percent year-to-year decline) after the February’s 1.9 percent slump. It added some positive to otherwise rather pessimistic pound’s trend.
Although there can be seen other factors in the current pound’s growth — like the decline in risk-aversion, the analysts point at the housing release as the primary reason. The pound is extremely dependent on the domestic real estate sector.
Euro Declines on Unemployment Report
The single European currency declined today to the levels close to its 2-week low before and after the report on Eurozone February unemployment negatively surprised the traders.
The Japanese yen, the U.S. dollar and the British pound all gained against the euro as the investors expected that the jobless rate will grow in the Eurozone at faster pace than the analysts have predicted earlier. After the report was released the euro rolled back up somewhat but is still remaining in negative zone. The report showed that the unemployment rate rose from 8.3 percent (revised up from 8.2 percent) to 8.5 percent, while analysts predicted a rate of 8.3 percent.
The released fundamental data signal a deepening of the recession with the positive impulse for the «safe haven» currencies (that may soon become not very safe). Now some analysts point at the fundamental weakness of the euro compared to the dollar as the main trend-setter for Forex market.
EUR/USD fell from 1.3242 to 1.3220 as of 10:18 GMT, touching the daily low at 1.3165 earlier. EUR/JPY fell from 130.95 to 130.60, while EUR/GBP declined from 0.9245 to 0.9181 today.
The Japanese yen, the U.S. dollar and the British pound all gained against the euro as the investors expected that the jobless rate will grow in the Eurozone at faster pace than the analysts have predicted earlier. After the report was released the euro rolled back up somewhat but is still remaining in negative zone. The report showed that the unemployment rate rose from 8.3 percent (revised up from 8.2 percent) to 8.5 percent, while analysts predicted a rate of 8.3 percent.
The released fundamental data signal a deepening of the recession with the positive impulse for the «safe haven» currencies (that may soon become not very safe). Now some analysts point at the fundamental weakness of the euro compared to the dollar as the main trend-setter for Forex market.
EUR/USD fell from 1.3242 to 1.3220 as of 10:18 GMT, touching the daily low at 1.3165 earlier. EUR/JPY fell from 130.95 to 130.60, while EUR/GBP declined from 0.9245 to 0.9181 today.
Euro Gains Stall by 61.8% Fib; Dollar/Yen Fresh 09 Highs
Euro rallies stall out by 61.8% fib retracement. Dollar/Yen to fresh 2009 highs; stalls ahead of 100.00. Cable poised for close well above 100-Day SMA; exposes 1.4990. Dollar/Swiss well propped on dips in the low 1.1300”s as expected. Dollar/Cad profits booked as trailing stop hit; bullish outlook unchanged. Australian Dollar considers major double bottom prospects. New Zealand Dollar dashes hopes for hourly h&s top; stalls by 78.6% fib.
Subscribe to:
Posts (Atom)