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| Yen Moves Down, Euro Hanging On Posted: 17 Feb 2012 05:34 AM PST
The AUD/JPY saw a sharp rise on Friday afternoon as traders are responding negatively to news coming from Japan. The BoJ went ahead with its decision to inject capital into the economy, thereby weakening the currency. While the yen did drop to its lowest point in 6 months, this could just be a temporary consequence of the Bank of Japan’s decision. The BoJ is hoping the decision to purposely weaken the yen was done in the hopes that this would ultimately trigger further investment down the line. Consequently, this would increase the probability that the overall value of the yen would rise past its normal levels. As the afternoon develops, we are also seeing that the euro is hanging on thus far. The single currency has so far been able to maintain its gains from late last night. The EUR/USD is staying right around $1.3124. As the week winds down, investors will be anticipating a significant impact from the EU finance ministers’ meeting on Monday. There, the ministers will determine the timeframe and contours of the anticipated bailout package for Greece. |
| Posted: 17 Feb 2012 02:05 AM PST
The euro picked up last evening in late trading. After being driven down consistently for the previous 5 days, the single currency put up gains of 0.7% and rose to $1.3153 as of late last evening. This is viewed as a response to positive statements given by several German finance ministers regarding the probability of a second Greek bailout package. Essentially, the ministers expressed confidence in the ability of the Greek government to meet its financial responsibilities. Additionally, the German representatives emphasized the likelihood that all parts of a bailout package would be approved Monday when EU finance ministers are scheduled to decide on the matter. Look for the possibility that market trends, especially the euro, will continue to be driven by the Greek situation. |
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