As reported at 3:20 p.m. (JST) in Tokyo, the Yen fell against the Euro to 121.91 Yen on the EBS trading platform, an 11-month low. Against the Aussie, the Yen slipped 0.7%, trading at 88.27 Yen, while against the greenback the Yen slipped 0.5% to 83.50 Yen.
Beginning today through tomorrow, officials from the Bank of Japan will be meeting to discuss policy in the wake of the crisis. Most analysts expect that they will signal their willingness for further easing measures, if necessary.
http://www.dailyforex.com/forex-news/2011/04/Yen-Continues-to-Slip-Broadly-Lower-Under-G7-Manipulation/7620
The U.S. Dollar rose against the Japanese Yen in Tokyo trading today as pension fund operators in Japan, as well as Japanese importers, bought the greenback heavily. As reported at 3:04 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Yen at 84.04 Yen, up from the 83.59 Yen in New York trading late Tuesday. Earlier in the session, the Dollar had slipped close to the 200-month moving average of 83.50 Yen. The Euro was also higher against the Yen, trading at 121.67 Yen on the EBS trading platform, up from the 120.98 Yen trade late in New York yesterday. The Japanese Yen had been sent soaring in yesterday’s trade as safe haven investors pushed the currency higher following the announcement by the Japan Nuclear and Industrial Safety Agency that they had raised the threat rating of the Fukushima nuclear plant accident to a level equivalent to that of Chernobyl. Today’s absence of bad news, generally, is apparently driving risk appetite higher, sending the Yen lower again. Most analysts agree that the USD/JPY will be testing the upside for the near term. Later today, focus should shift to the U.S. where retail sales data is expected to be released; further on in the global day, the U.S. Federal Reserve’s Beige Book update will also be released, providing a behind-the-scenes indication of the U.S. economy’s direction. The U.S. Dollar Index, a gauge of the greenback’s value versus other major currencies, was recently at 79.906 .DXY, up from 74.863 .DXY.
http://www.dailyforex.com/forex-news/2011/04/Absence-of-Bad-News-Sends-Yen-Lower/7677
Elsewhere, the Euro held steady just below a 5-month peak versus the U.S. Dollar, as investors reassess their positions ahead of the ECB policy setting meeting to be held later this week. Most analysts expect that the European Central Bank will hike the current rate by 25 basis points to 1.25% in an attempt to stave off inflationary pressures in the Eurozone, driven primarily by higher commodity prices. Analysts are expecting that before year’s en, the ECB will have raised their benchmark rate to 1.75%. So far this year, the Euro has gained better than 6% against the greenback. Earlier, the Euro was trading against the U.S. Dollar at $1.4192. Further gains in the Euro are likely to be limited, given that rate hikes are already factored in.
http://www.dailyforex.com/forex-news/2011/04/Aussie-Dollar-Slips-Following-RBA-Rate-Decision/7613
In light of the recent disasters in Japan, the International Monetary Fund reduced its forecast for Japanese growth from 1.6 to 1.4. This behavior is typical for the Japanese currency during times of disaster. The IMF’s forecast for 2012 was raised from 1.8 percent to 2.1 percent.
http://www.dailyforex.com/forex-news/2011/04/Dollar-and-Yen-Strengthen-After-New-Earthquakes-Hit/7667
While the interest rate hike is not yet a done deal, many economists are suggesting that given the fiscal state of several of the Eurozone nations, i.e. Portugal, Spain, Greece, etc., an interest rate hike will be more harmful than good.
As reported at 2:57 p.m. (JST) in Tokyo, the Euro slipped against the U.S. Dollar, trading at $1.4297 following yesterday’s surge to $1.4350. Near term support is pegged around $1.4285 to $1.4250; some currency strategists say that if the Euro can’t rise well above $1.4282, it could retreat to near $1.4160. Against the Yen, the Euro was trading at121.77 Yen following yesterday’s 11-month peak. Most analysts agree that the long-term outlook for the Yen is on a downtrend.
http://www.dailyforex.com/forex-news/2011/04/As-ECB-Meeting-Looms-Euro-Falls/7631
The common currency Euro, on the other hand, is approaching highs against the U.S. Dollar, as investors speculate that the ECB will continue to tighten monetary policy following the recently implemented interest rate hike. As reported at 2:58 p.m. (JST) in Tokyo, the Euro gained nearly 0.5% to trade at $1.4508, close to the 15-month peak of $1.4521. The U.S. Dollar also fell lower against the Japanese Yen, trading at one point at 83.20 Yen on the EBS trading platform, and well off the 6½ month peak of 85.55 Yen struck last week. One FX strategist in London pointed out that the U.S. Dollar has no new factors on which to rise, since it appears obvious that the Federal Reserve is not going to change its current stance anytime soon, given lingering high unemployment.
http://www.dailyforex.com/forex-news/2011/04/U.S.-Dollar-Index-Strikes-16-Month-Trough-in-Asia/7684
Against the U.S. Dollar, the Yen was trading at $1.4269 on the EBS trading platform, a 5-month peak. Most traders expect the Euro to continue to gain broadly until the meeting takes place as speculation becomes reality.
Market Fluctuations
In spite of repatriation inflows, the Japanese Yen remains under downward pressure as the coordinated efforts of the G7 continue, and from growing speculation that the Japanese central bank may downgrade the country’s economic assessment later in the week. The U.S. Dollar gained slightly against the Yen, trading up 0.1% to 84.11 Yen; on Friday, the greenback struck a 6-month peak of 84.735 Yen on the EBS trading platform.Most analysts see the Dollar’s rise to be limited, and possibly reversing, as the Federal Reserve’s controversial quantitative easing program draws to a close. Some analysts note that the Fed’s stance has become more hawkish in recent days, but one key Fed board member refuted those claims noting that a change to current policy is very far away.
http://www.dailyforex.com/forex-news/2011/04/Euro-Striking-New-Multi-Month-Highs-as-ECB-Meeting-Looms/7602
By: Barbara Zigah The Japanese Yen slipped lower against the common currency and the Australian Dollar in Asian trading today, and analysts expect further weakening as risk appetite increases, generally. As reported at 2:52 p.m. (JST) in Tokyo at one point in the session on the EBS trading platform the Euro traded against the Yen at 123.33 Yen, a 16% gain from the mid-March trough of 106.50 Yen, before trimming gains to 122.62 Yen. The Australian Dollar also struck a 2 ½ year high against the Yen, when it struck 90.04 Yen earlier in the session; later, some of the gains were pared when it traded at 89.64 Yen still higher by 0.1%. According to analysts, the Japanese central bank is likely to lag behind other countries’ central banks in order to give their nation a chance to recover from the tragic earthquake and tsunami which struck last month. The Japanese economy had been in a long period of stagflation, and most analysts agree that this event will likely shift the economy’s direction. The Japanese Yen had been a consistently strong currency prior to the earthquake, and repatriated flows endanger its resumption. The G7 has been collectively and successfully working to suppress the Yen’s rise.
http://www.dailyforex.com/forex-news/2011/04/Japanese-Yen-Continues-Downtrend-with-G7-Intervention/7649
The Euro is being buoyed by yesterday’s announcement of an ECB rate hike of 25 basis points. Against the U.S. Dollar the Euro struck a 15-month peak, trading at one point to a high of $1.4405. Investors had been keen to hear the press conference held afterward by Jean-Claude Trichet, the ECB President, but the bank’s direction remains somewhat unclear with the Bank in wait-and-see mode. Some economists are expecting that the ECB will hold the rate in check through July, when rising inflation will likely prompt another hike.
http://www.dailyforex.com/forex-news/2011/04/Yen-Slips-Further-while-Euro-Buoyed-by-Rate-Hike/7644
As reported at 2:46 p.m. (JST) in Tokyo, the Euro is trading against the greenback at $1.4472, edging back 0.1% from late Thursday trading in New York but still within striking distance of the $1.4521 peak struck earlier in the week. Most market players don’t believe the Euro will face difficulty rising above $1.45, especially given the Eurozone’s debt problems and with Irelands’ credit rating being downgraded earlier today.
Recent rhetoric from several Federal Reserve officials has increased investor speculation that the central bank’s ultra loose monetary policy is likely to remain as such for an extended length of time. Collectively, the position of the Fed is that inflation – and the subsequent hikes in the prices of commodities – remains transitory and manageable by the current policy. The European Central Bank, conversely, continues to closely watch inflationary pressures and acknowledges that it is ready to move again with additional interest rate hikes if the situation warrants.
http://www.dailyforex.com/forex-news/2011/04/Ireland-Downgrade-Only-Marginally-Affects-Euro/7698
