FOREXYARD: Forex News Blog

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• Crude Oil Takes a Spill
• JPY Continues to Weaken
• USD Gaining on Multiple Fronts
• Euro Lacks Direction
• Euro Remains Choppy
• Good News for the UK, Not for the Sterling
• JPY Remains Weak
• Brief Reprieve in Debt Crisis
• EU Makes Gains as Bailout Package Expected
• EUR and USD Makes Gains on Japanese Yen
• Crude Oil Prices Rise Sharply

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.

Good News for the UK, Not for the Sterling Posted: 21 Feb 2012 08:16 AM PST The British government presented its public sector net borrowing figures earlier this afternoon and indicated in the report was a surplus of 7.75 billion GBP. These figures displayed the largest monthly surplus in public finances since 2008. While these figures do well to indicate overall economic health, the GBP/USD is so far not experiencing the kind of boost it might wish for from this news. This could very well be a case of uncertainty regarding the EUR affecting other currencies as well by reverting to the safe haven USD.

JPY Remains Weak Posted: 21 Feb 2012 02:38 AM PST The Greek bailout package is certainly dominating the news today, however, there is other news around the market. The USD has continued its strong stance against the JPY. Going into this afternoon the USD/JPY is trading at 79.64. This can be attributed primarily to the Bank of Japan’s decision to inject a large amount of capital into its economy last week, purposefully driving down the value of the yen. While the Japanese yen was not able to stay strong against the greenback, the Australian dollar did rally against the USD and is remaining strong as of this afternoon. The AUD is hovering right around $1.07. This afternoon, expect to see more developments regarding the euro. Additionally, there will be news out of the UK regarding its public sector net borrowing figures.

Brief Reprieve in Debt Crisis Posted: 21 Feb 2012 02:14 AM PST Top EU finance ministers met for nearly 14 hours yesterday in Brussels in order to approve the second bailout package for Greece. Many EU officials had expressed confidence that such a deal would be approved and were generally pleased with Greece’s ability to carve out 325 million euros in additional spending cuts. Essentially, there were no big surprises in the final draft of the package and the deal met the expectations of investors around the EU as well as internationally. Heading into this afternoon, we have already witnessed a rise in the euro against the USD and the Japanese. The common currency has held gains against the greenback and is trading at $1.3266. Against the JPY, the euro is remaining strong at 105.33. Despite the brief reprieve, many analysts are looking at the long term decline of the euro and are not seeing any changes. Many are predicting the probability that the overall downward trend in the euro will not change for a few reasons. First, the Greek bailout package was not a surprise to many and the final draft of the package also did not present any unusually positive surprises. Additionally, there is still a risk that Greece will fail to meet its debt obligations. Investors will still have to wait and see whether or not meets its debt obligations in March.

EU Makes Gains as Bailout Package Expected Posted: 20 Feb 2012 08:42 AM PST The meeting amongst EU finance ministers has begun in Brussels with high hopes for the second Greek bailout package to be approved. Several EU leaders, including the prime minister of Luxembourg and chairman of the eurozone finance ministers group, expressed their confidence that Greece would receive the necessary funds it needs to stay afloat. The euro has seen a rise against the sterling and Japanese yen in light of the positive atmosphere ahead of the EU finance ministers’ decision. The EUR/GBP stands at 0.8350, while the EUR/JPY is at and is at 105.44, an increase of 0.8%.

EUR and USD Makes Gains on Japanese Yen Posted: 20 Feb 2012 07:01 AM PST The euro and US dollar made significant gains on the Japanese yen this afternoon. So far, the euro has solidified gains and is at 105.44, an increase of 0.8%. The greenback has taken its gains against the JPY to 79.89, a six month high for the USD/JPY. Driving this trend of a weaker yen is the decision taken last week by the Bank of Japan to insert heavy amounts of capital into the economy. So far, the weakening of the yen is consistent with the strategy of the BoJ in which the Japanese currency weakens and thus its exports become much more attractive to other countries.

Crude Oil Prices Rise Sharply Posted: 20 Feb 2012 06:03 AM PST Crude oil has taken a sharp rise as tension between Iran and the West increases. In response to harsh sanctions handed down to Iran by western countries, the Islamic Republic announced Sunday that it will cut off shipments of crude oil to the UK and France. As of Monday morning, Brent crude oil prices have shot up by 1% to $120.59. While countries such as Saudi Arabia have done their best to reassure Western countries that they will fill any void left by Iranian actions, the price of crude is still experiencing dramatic volatility as tension over Iran’s nuclear program increases.

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