JPY Forex Weekly Archive
Daily Economic News - Apr 16, 2008
The JPY fell vs. the greenback on the release of strong U.S. inflation and manufacturing data. The positive outlook for the dollar was also supported by the market belief that the Fed may not need to cut rates as aggressively. The carry trade has been restored and risk appetite seems to have returned to the market. Both the Bank of Japan and the Japanese government recently noted increasing economic risks in the U.S. and their negative effects on Japan's economy. This suggests the BoJ will not be raising the overnight interest rate from 0.50% anytime soon. In the following days, the Japanese currency will continue to heavily depend on the volatility of the equity markets. There was no significant economic news coming out of Japan yesterday and today is also devoid of data. We should see the JPY continue on its bearish path. Forex traders should keep an eye on the economic events around the world, as today could prove to be another very volatile day for the Japanese currency.Daily Economic News - Apr 15, 2008
Risk behavior was characterized with the JPY market yesterday as positive US economic data finished its 8 days bullish momentum since the Tool Orders report and the Core Machinery Orders release in Japan on April 9th. In the first hours of the trading session, the JPY added 0.9% to its value almost reaching the psychological level of 100 JPY to one USD. However, the JPY depreciated later due the US positive economic data release and the pair back to be traded above the level of 101.00. At yesterday's Monetary Policy Meeting Minutes, the BoJ members reiterated the need to pay close attention to increased downside risks in Japan as a result of the intensifying slowdown in the U.S. and lingering turbulence on global financial markets. Japan's economy is the most sensitive economy in the industrial world, and is mainly affected by the Asian economics. The high Yen prices effected and will continue to affect the country's exports, which is the second largest exporter in the world. Traders should pay attention to the BoJ behavior in the short term as it will try to avoid the country from entering a sharp local recession while the other industrial world economies seems to start passing the credit crisis slowly. There is no important data release expected from Japan today, traders should follow March PPI release from the US at 14:30 GMT.Daily Economic News - Apr 14, 2008
Despite broadly weak data the JPY managed to gain last week, as unsavory conditions for the carry trade weighed on the USD/JPY following the G7 finance ministers statement that global economic prospects have weakened and financial market losses will continue. The Yen also rose against all of the major currencies as General Electric Co.'s first quarterly decline in profit since 2003 led to sharp declines in stocks and encouraged investors to reduce holdings of higher-yielding assets. The JPY first dropped to as low as 101.97, down from around 101.00 level in late New York trade, but later trimmed its losses and stabilized around 100.89. In the next 48 hours, there is no fundamental data expected to come out of the Japanese market. Later, on Thursday, the news suggests that Japanese Industrial Production and the Household Confidence will remain low for the foreseeable future. Today, traders should keep an eye on the U.S. Retail Sales data as higher then forecasted printing might pull the U.S. currency up against the JPY.Daily Economic News - Apr 11, 2008
Yesterday, there was a strong intraday reversal in all of the JPY crosses following the rally in US stocks and the USD surge. The low yielding Yen also lost ground vs. the USD as demands for carry trades accelerated. The Yen last traded down 0.1% at 101.67, after earlier trading to a session low of 100.04. Despite of the partial recovery, there is a possibility that the carry trades crosses including the USD/JPY, might suffer more losses as soon as the beginning of the next week. The currency markets indicate that risk aversion is returning. Meanwhile, Japanese economic data has been improving with CGPI rising yesterday more than expected in the month of February. The Corporate Goods Price Index (CGPI) measures the rate of inflation experienced by corporations when purchasing goods. This indicator is of a minor importance and as was expected, did not have any major impact on the Japanese currency. The Japanese currency is likely to remain bearish ahead of today's G7 Meeting. Apart from that, there is no important economic news expected to be released from the Japanese markets. Investors should look toward global news, to chart JPY movement.