According to, Toyoo Gyohten, the president of the Tokyo based Institute of International Monetary Affairs, the Japanese economy may enter a short period of recession soon and that will slow down or even reverse the yen?s appreciation trend. As the result of this possible recession, Japanese yen will be traded inside the 105-110 range against the U.S. dollar, while earlier analysis predicted that the 100 rate … “Recession in Japan May Reduce Gains in Yen”
Month: February 2008
USD/CNY at Record Low Level
The Chinese yuan continued its triumph this week and was set at a new record high value against the U.S. dollar today at the Shanghai Foreign Currency Trade session. It will be 10th straight gaining week for the yuan if it closes at the 7.179 yuan per dollar. It is significantly lower rate than yesterdays 7.1904. Since European and American officials started to press on Chinese government to appreciate yuan … “USD/CNY at Record Low Level”
GBP Continues Rising against Other Majors
Great Britain pound continued its almost a week long rally against the currencies of Eurozone, U.S. and Japan, as the traders believe that the Bank of England will turn its head to inflation rather than the lack of the financial liquidity. There is now a three days of consequential growth on the GBP/JPY Forex pair, but it still is quite moderate result for this trading instrument. Withing these three days GBP/JPY easily went up from 208.66 to 213.42. … “GBP Continues Rising against Other Majors”
Trade Idea: Buy Australian Dollar with Euro
According to the new research note by Richard Grace from the Commonwealth Bank of Australia, it would be better to buy Australian dollar with euro in 2008 to earn from the interest rates difference. The EUR/AUD currency pair is proposed to substitute the AUD/JPY as the next carry trade investment opportunity, because along with the wide positive interest rates difference its more stable than the yen based currency … “Trade Idea: Buy Australian Dollar with Euro”
Jean-Pierre Jouyet: Euro is Ready, U.S. is not
Jean-Pierre Jouyet said that during the last G7 meeting (which was on February 10th in Tokyo), that there weren’t any signals from the U.S. representatives, that the States are going to try correcting the current unbalanced situation in Forex. It looks like the French officials are the ones that are most concerned with the current … “Jean-Pierre Jouyet: Euro is Ready, U.S. is not”
Rand â Worst Performer so Far
The strongest African economy may soon lose its position at least so tells us its currency. South African rand appears to be one of the worst performing currency of 2008. Rand, being an indicator of the national economys health, was the top loser against the U.S. dollar this January with a loss exceeding 4.4%. Although gold and platinum (South African export commodities) were appreciating fast last month, traders were concerned with electricity … “Rand â Worst Performer so Far”
Joaquin Almunia: Euro Above Equilibrium
Today before the G7 meeting in Tokyo, Japan, Joaquin Almunia, who is currently European Commissioner for Economic & Financial Affairs, told the reports that the European currency is still above its fair value. Despite the euro has already stopped its fast appreciation against the U.S. dollar, started a possibly strong decline against the Japanese yen and now is growing only against … “Joaquin Almunia: Euro Above Equilibrium”
Pound Recovers against Euro, Dollar, Yen
Today the Great Britain pound started to recover from the week-long losses against the other major currencies, such as the U.S. dollar, euro and the Japanese yen. Thats quite a surprise for the Forex traders, because yesterday BoE reduced the official Bank Rate by 0.25% and the pound was falling down strongly, especially against dollar. The only currency which reversed … “Pound Recovers against Euro, Dollar, Yen”
BoE Lowers Rates, ECB Holds Them
Today two important interest rates decision were highly anticipated by the markets â the monetary policy decisions by the European Central Bank (ECB) and the Bank of England (BoE). Before both of the banks released their monetary policy statements, the majority of the economic analysts were predicting the results. It was expected that BoE will lower the rates, while ECB will abstain from reducing or increasing the interest rates. Both predictions became real â the Bank … “BoE Lowers Rates, ECB Holds Them”
South African Reserves Gold Value Increases
Last month South African Reserve Bank bought less foreign currency reserves than in December 2007, as one of the ways to help the rand avoid further weakening. Spurred by the exports of now expensive commodities South African national reserves continued to grow in January, as the government tried to improve the national currencyâs position. Record high reserves in foreign currency and gold also help stabilizing the whole … “South African Reserves Gold Value Increases”