Posts Tagged ‘Japanese Yen’

Yen rose against major currencies, euro debt crisis break down

Posted by Tushar Mathur on October 31st, 2011

The dollar fell for record low against yen since after the news on the US consumers view on the economy was said and it was since the middle of the great recession. On Tuesday it was noted that the Japanese currency, yen rose against major other currencies and it was seemed to be US consumer sentiment weak and also the euro debt crisis issue also seems to breakdown for a while.

The Conference Board Index said that the index value is low and it is marked to be far lower than that analysts have expected. The consumer sentiment has made it worse since March 2009.

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US economy growing leading dollar to rise

Posted by Tushar Mathur on October 9th, 2011

Although there seems to be a slower growth in the US economy, the growth stills happens to be persist. The report produced by the US government says that the dollar has risen against euro. The economic growth of the euro has been trembled not just by the dollar rise but also by some troubling signals from Europe.

The rise of euro was on late Tuesday to about $1.3246 however it fell from $1.3369 (Wednesday morning) to $1.3351 (late Wednesday). Survey on the service sector tells that the companies have expanded their business in the month of September when compared with august. In august the growth was at slower pace.

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Forex might help you reduce your debts by increasing cash flow

Posted by Tushar Mathur on September 7th, 2010

Forex or Foreign Exchange Market is an international exchange market where currencies are bought and sold. The idea of Forex trading is very simple. In the Forex market you exchange one currency for another, when the price of this currency is low. You then exchange it back, when the price rises and in this way make money. With the inflow of excess cash you can expect debt reduction.

The buying and selling is done in pairs. Usually for investment purposes, four main currency pairs are used. They are as follows – the Euro against the US dollar, the British pound against the US dollar, the US dollar against the Japanese yen, and the US dollar against the Swiss franc.

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Oil Prices and Forex

Posted by Tushar Mathur on May 18th, 2010

The movement of any currency is governed by many factors like demand and supply, country’s economic health, trade balance etc. One such significant determinant is the commodity price.

Oil and gold sectors influence the currencies in a big way. Knowledge of these sectors and their performance help the forex traders in understanding the movement of the currencies. Some currencies like USD, Australian dollars and Canadian dollars exhibit high correlation with these commodities. Whereas Swiss francs and Japanese yen are not much sensitive.

The oil prices are very dynamic. This is an important indicator of country’s economic health. Oil is traded throughout the world in dollars.

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Forex –Relevance of Currency Correlation In Forex Trading

Posted by Tushar Mathur on April 23rd, 2010

Forex is the foreign exchange market. It is the largest financial market in the world and allows the trading of currencies of different countries.

Large businesses, corporates, institutions, governments, banks etc are the active participants in forex trading.

However of late, forex is also witnessing trading by retail traders i.e. Individuals.

Forex trading can only take place in pairs. It is for this reason that the understanding of currency correlation is of immense importance.

Correlation is basically interdependence.

Following points must be remembered:

•    Interdependence between two traded pair is currency correlation.
•    The value of correlation can vary form –1 to +1.

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Understanding Different Currencies

Posted by Tushar Mathur on February 21st, 2010

Currency exchange is an important aspect of international business. Economic development, trade, tourism, finance and many other important aspects of the world economy are dependant on this.

The main global currency is the U.S. dollar (USD). This means that it is the currency held by governments and organizations around the world to fund international trade and financial transactions. Many global commodities, such as oil and gold are valued by the U.S. dollar.

Currencies can be distinguished as either floating currencies or fixed currencies based on their exchange rate regime. Currency of the European Union, the Euro is rapidly becoming a dominant global currency.

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US Dollar is still a strong currency

Posted by Tushar Mathur on February 3rd, 2010

The year 2008 was bad, to put it mildly, in terms of recession and economic downturn/ slowdown in the United States of America. It was no different in the year 2009, perhaps even worse, it seemed as if the economy of the US was in a free fall. It is therefore not at all surprising that US dollar lost lots of its sheen and hence its value. To rouse the economy of the country the Government went ahead with another cut in the interest rates of the Federal Reserve. It was or rather is a misconception that these stimulus packages offered by the Government to bail out the economy will further plunge the value of US dollar.

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Yen Benefits from China’s Lending Restrictions

Posted by admin on January 15th, 2010

Demand for safety rose today as concerns among investors that Chinese lending limits announced this week by the nation’s government may impact the global economic performance, allowing the yen to beat all of the main traded currencies in foreign-exchange markets today. The yen gained today versus greenback as reports in the world’s wealthiest country came slightly below forecasts, also showing a slow down in the inflation. The euro declined sharply versus the Japanese currency as concerns regarding Greek’s budget deficit are still affecting the outlook for the European currency, causing an outflow of capital towards the safety provided by yen-priced assets.

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Yen Tumbles as Australia Fuels Risk Rally

Posted by admin on January 14th, 2010

The Japanese currency declined in the beginning of this Thursday’s session on Australia’s better than expected employment data, which increased attractiveness for riskier assets as the South Pacific economy recovery improves confidence among traders. The yen, known as the best refuge currency for times of uncertainty, declined today as unemployment surprisingly fell in Australia, bringing Japanese investors to buy riskier assets overseas, as the Australian economic recovery indicates better economic conditions not only in the South Pacific region but also among its main trading partners. AUD/JPY traded at 85.01 as of 02:35 GMT from a previous rate of 83.89 in the intraday chart.

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Australian Dollar Climbs on Unemployment Rate

Posted by admin on January 14th, 2010

The Australian dollar climbed after employment figures were published in the country with better-than-expected numbers, adding confidence that the economic recovery in the country is accelerating its pace, spurring demand for assets in the South Pacific region. After unemployment in Australia declined to 5.5 percent and surprised forecasts that expected an increase, the Aussie dollar gained versus most of the main traded currencies, specially lower-yielding options like the Japanese yen, impacted by the growing risk appetite in Australia. AUD/CAD traded at 0.9579 as of 02:27 GMT from 0.9504 hours before the employment figures were published in Australia.

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Yen Rallies on China’s Banking Policy

Posted by admin on January 12th, 2010

Risk aversion declined significantly today after China set a new reserves requirements for banks in the country, allowing the yen to outperform all of the 16 main traded currencies in foreign-exchange markets, as pessimism surged. Equities markets in Asia and globally declined today, raising demand for the yen, as China set a minimum of 16 percent of reserves that large banking corporations in the country must have, in order to avoid a credit bubble as the one that caused the global slump in late 2008. The yen is considered the safest refuge in currency markets for turbulent times and benefited from today’s negative scenario, as China’s policy decreased demand for high-yielding assets, which were trading high since the beginning of the year.

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Understanding Forex Quotes

Posted by Tushar Mathur on December 7th, 2009

Understanding forex quotes can be quite challenging and it may take some time while you can master the implications of these quotes.

A forex quote is always measured in respect of two currencies, where one currency is being sold and the other is being purchased. Also, there are two prices namely, the bid price and the ask price, one is the selling rate and the other is the buying rate.

Let us take a live example of a Forex Quote. If the forex quote of US dollar and Japan Yen. Now if the quote is USD/ JPY 106.52/56.

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Credit risk

Posted by Tushar Mathur on November 5th, 2009

Credit risk or counter party risk arises out of the potentiality that outstanding positions on currencies will not be honoured as per contract due to a deliberate or unintended activity by that counter party. This is where the role of the clearing houses comes into action and forex trading takes place in regulated exchanges where trades are settled by the clearing houses. The concern for credit is minimized in this way. Credit risk can be replacement risks and/or settlement risks which are described below.

Replacement risks:

This occurs when the books of counter party are found to be unbalanced and shows a difference similar to the outstanding amount to the insolvent party.

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Growth of dollar / yen has slowed down near the level of 92.20

Posted by admin on October 26th, 2009

Let’s start with the fact that our previous forecast was confirmed at the auctions on Friday the U.S. dollar continued to strengthen against the Japanese yen, but the upward movement has slowed down near the 92.20 level and has started a correction, which is still going on …USD / JPY Current price levels are still located above the moving averages with periods of 34, 55, 89 and 144, which is directed upwards and point to the continuing bullish sentiment.The MACD histogram is located in the positive zone, but their attempts to cross the signal line downwards, and thereby generate a signal to sell the dollar / yen.Stochastic Oscillator out of the overbought zone and has already formed such a signal, since the beginning of the% K line falls below the% D.Therefore, we expect that the correction will continue and increase, if it is punctured by the level of support 91.30, which could open the way for the bears to the levels of 90.80 and 90.40.At the same time we must not forget that the aggressive buyers of the dollar / yen can return to the market, if would be punctured 92.20 resistance level.Levels of resistance: 92.00/10, 92.50, 92.70, 93.00Current price: 91.76Support levels: 91.50, 91.00, 90.70, 90.50, 90.20/00

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Mizuho expects weakening the Japanese currency

Posted by admin on October 23rd, 2009

The Japanese yen fell to a two-month low against the single European currency against the backdrop of growth in the stock markets, triggered by good data on the earnings of the companies – this is yet another sign of reviving the global economy boosted demand for higher-yielding currencies. As the currency analysts Mizuho, interest risk, in general, increases, and this is the explanation for weakening the Japanese currency. In a situation of increasing “risk appetite”, subject to the overall growth in the commodity and stock markets, the yen will remain under pressure.

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