| Strength from the USD Posted: 24 Feb 2012 03:21 AM PST 
Following a brief reprieve in its downward trend yesterday, the Japanese yen is again falling behind against the euro and USD. As of this morning, the USD has gained 0.7% against the yen putting the USD/JPY at 80.56. This marks the yen’s weakest mark against the greenback in nearly eight months. The euro also was able to make gains this morning against the yen. As it stands, the single currency is enjoying a recent push and is trading at 107.76. This marks its highest point since last November. There are a number of reasons for the ongoing decline in the Japanese Yen. First, the decision last week by the Bank of Japan to inject millions of yen into the economy and purposely weaken the currency is taking effect. More recently, the USD has fared well against the JPY as numbers regarding the U.S. recovery efforts are showing good signs. Thus, as the overall health of the U.S. economy improves we can expect to see solid strength from the USD against more volatile currencies, such as the Japanese yen. Heading into this afternoon, be on the lookout for announcements from the U.K. and the U.S. The U.K. will be releasing their revised GDP numbers while the U.S. will be releasing its monthly home sales report. Keep an eye on how these announcements affect the market. Read more forex news on our forex blog.  |
| Yen Struggling to Regain Strength Posted: 24 Feb 2012 03:04 AM PST
Following a brief reprieve in its downward trend yesterday, the Japanese yen is again falling behind against the euro and USD. As of this morning, the USD has gained 0.7% against the yen putting the USD/JPY at 80.56. This marks the yen’s weakest mark against the greenback in nearly eight months. The euro also was able to make gains this morning against the yen. As it stands, the single currency is enjoying a recent push and is trading at 107.76. This marks its highest point since last November. Read more forex news on our forex blog.  |
| U.S. Unemployment Numbers Released Posted: 23 Feb 2012 07:59 AM PST
Unemployment claims from the U.S. remain roughly the same as last week following the report released this afternoon from the States. While there certainly could have been more positive news, the market is so far not experiencing any dramatic reaction from the announcement. Some analysts, however, are taking the news fairly positively as it does indicate the ongoing recovery of the American economy. Stay tuned for the possibility of more dramatic changes in the unemployment claims in the coming months. Read more forex news on our forex blog  |
| Euro Gains Strength Posted: 23 Feb 2012 06:13 AM PST
A dose of good news from Germany has boosted sentiment regarding the euro against the greenback. Earlier this afternoon, the euro was trading against the dollar at $1.3343 which marked its strongest point since December. Analysts, however, did predict that the EUR/USD would not be able to maintain its gains over $1.3300. In this instance, analysts we correct in their assessment as we now see that the euro has dropped down to $1.3294. Behind this recent push by the euro is the good news from Germany concerning its Ifo data. The Ifo, which assesses business expectations for the upcoming six months, indicated a sharp rise and positive growth from the EU’s largest economy. The figures can also serve as an important GDP indicator for the coming year. Based on these numbers, analysts are asserting that Germany will indeed avoid the much dreaded recession that many were worried about. Read more forex trading news on our forex blog.  |
| Gold Slowing Down Posted: 23 Feb 2012 03:06 AM PST
Gold rallied yesterday as it appealed to many traders as a durable option for investing. Today, however, gold has made a brief stopover and has ceased its upswing as of this morning. Currently, gold is hovering at 1778.8 and is subject to several trends around the market. China, for example, has gone through its fourth straight month with weak manufacturing numbers. The Chinese manufacturing sector continues to struggle to regain strength. This may lead to further measures down the line on the part of the Chinese government to ease monetary policy. This, in turn, could further drive investors to gold which would be seen as a more durable option. Furthermore, this assessment also lines up with what many technical analysts have already expressed; this may be just a brief lull in the overall rise of gold.  |
| Crude Oil Falling Behind Posted: 23 Feb 2012 02:08 AM PST
Crude Oil dropped from its nine month high and as of this morning is hovering at 106.18. There are several factors contributing to the reprieve crude oil’s rise, first being the announcement that U.S. stockpiles of crude oil had increased. Additionally, the demand for gas and oil has down for some time in the U.S. Some cite the high prices and the still recovering economy for this decline in demand. Also contributing to the dip in crude oil prices are indications from Europe and China that they too are experiencing a fall in demand for crude oil. The ongoing Greek debt crisis and the overall uncertainty that surrounds the euro-zone’s economic health could very well be a contributing factor to the decline in crude oil. As for China, the demands for oil dropping could also be reflection of the contraction that the manufacturing sector has been experiencing as of late.  |
| Crude Oil Takes a Spill Posted: 22 Feb 2012 09:31 AM PST
Crude oil has fallen from its highest point since last Spring and has reached a value of $121.65. Analysis of the recent drop can possibly be attributed to the speculation that demand for oil from Europe and China will drop in the coming days. This, of course, is offsetting the ongoing tension between Iran and the West over its nuclear program which have been continuously driving up the price of oil. Worries over the implementation of the second Greek bailout package continue to grip investors. The euro weakened today in the face of such uncertainty. Picking up steam was the USD/EUR as traders look for a more stable currency to invest in. Heading into tomorrow, we should see a lot of the same stories continuing out of Europe. In the US, however, there will be a new report on unemployment figures released. While the overall impact on the market remains to be seen, this will be an excellent indicator of overall economic health for the US.  |
| JPY Continues to Weaken Posted: 22 Feb 2012 08:32 AM PST
The Japanese yen continues its downward stumble against several currencies, including the USD and EUR. In light of the Bank of Japan’s decision to inject millions of yen into the economy last week, the currency is now experiencing exactly what the BoJ had hoped for by decreasing in value. The USD/JPY is sitting just about 80.00 for the first time since last summer. Meanwhile, the EUR/JPY has reached 106.33 which is its highest point since last November. Analysts have indicated some uncertainty as to when this trend will come to a close or reverse, however, recent history of the yen indicates a chance that the yen will bounce back in the near future. Of course, this is ultimately the goal for the BoJ.  |
| USD Gaining on Multiple Fronts Posted: 22 Feb 2012 04:53 AM PST
The USD is experiencing renewed strength against the euro and the Japanese yen. Clearly, the uncertainty surrounding the euro has driven up the USD/EUR, however, the USD is enjoying a rise in general as traders are migrating towards the more risk averse greenback. Additionally, the USD/JPY has moved past the Y80.00 point. This marks the highest spike in the USD/JPY since last summer. While some expect the yen to continue losing ground, there is also the possibility that it could gain some strength back as investors begin to buy back the yen while it remains at a lower value.  |
| Euro Lacks Direction Posted: 22 Feb 2012 02:28 AM PST
As trading began on Wednesday the euro continued to display a lack of direction. The second bailout package for Greece has been secured, however, overall market sentiment indicates that investors are worried about the actual implementation of the package. Additionally, there remains the risk that Greece can still default on its debt obligations. This has led to a spate of risk averse trading with investors flocking to the less volatile USD. Also this morning we’ve seen a mixed bag of news from Europe. Flash manufacturing PMI data was announced for both Germany and France and each differed in their results. Germany fell behind the expected outcomes while France actually came out ahead of what many analysts forecasted. This may contribute to the overall sentiment of uncertainty surrounding the euro this afternoon.  |
| Euro Remains Choppy Posted: 21 Feb 2012 08:18 AM PST
The euro has given up its early gains from last night and earlier today. Following the news that EU finance ministers were able to hammer out an acceptable bailout package for Greece there was an upsurge in the euro against both the USD and Japanese yen. This morning saw gains of 0.8% only to be reversed following a case of nervous sentiment as the EUR/USD is now sitting at 1.3223. This reversal could be due to a number of reasons and could, quite frankly, be a result of a lack in investor enthusiasm regarding the package. The package did not present investors with any positive surprises worth getting excited over. Moreover, there still remains the risk that Greek will not be able to meet its debt obligations come March regardless of the bailout package.  |
