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Market News
Market News
The Euro slipped against both the greenback and the Japanese Yen during Asian trading hours as investors take a wait and see approach ahead of the European Central Bank’s policy meeting decision which will be announced later today.
The Japanese Yen fell broadly during the Asian trading session while investors consider the next probable Bank of Japan governor who will be called to act as the government’s puppet in their quest to bring the Japanese economy back to health.
During the Asian trading session, the Euro gave back some of its previous gains as investors consider the political fallout in two of the Eurozone’s largest economies, specifically Italy and Spain.
A new week began much as the old week did, with the Japanese Yen under unrelenting sell pressure as investors wonder how far the Japanese central bank will have to ease in order to bring under control several years of dogged deflation.
The Japanese Yen was broadly lower during Friday’s Asian trading session, posting the largest monthly drop against the Euro in more than a decade as investors ready themselves for the Bank of Japan’s aggressive easing measures.
As the US economy slipped to an annualized rate of 0.1% in the fourth quarter of 2012, the rate of growth in Asia surpassed all expectations.
Market players moved into higher risk currencies such as the Euro and shunned both the U.S. Dollar and the Japanese Yen following the U.S. Federal Reserve’s announcement yesterday to maintain its $85 billion monthly bond-purchasing scheme.
The Euro steadied close to a 14-month peak against the greenback during the Asian trading session, but resistance which is set at $1.35 has still not been breached and currency experts say that without breaking that key psychological level that gains will be limited.
During the Asian trading session, the U.S. Dollar slipped from a recently struck multi-year peak after investors booked profits in the wake of the recent Dollar rally, however analysts confirm that in light of the Bank of Japan’s aggressively loose monetary policy that the Dollar’s decline is certain to be short-lived.
The Euro was lifted close to an 11-month peak versus the U.S. Dollar during the Asian trading session, propped up by growing optimism that a true economic recovery in the Eurozone might finally be under way.
During the Asian trading session the Japanese Yen struck a 2½ year trough against the greenback and a multi-months low against the common currency Euro as investors focus on the government’s policies and plans to restore economic health to Japan.
Following the release of PMI data from China which was unexpectedly improved the Japanese Yen edged lower while the Australian Dollar moved higher. According to the preliminary HSBC PMI, factory sector growth surged to a level not seen in 2-years last month, providing some encouragement to investors that the global economic outlook may finally be improving.
As they have done so many times in the past, the Bank of Japan’s policy makers disappointed some bearish investors which resulted in the currency’s firming rather falling.
On the eve of the Bank of Japan’s policy setting decision, the Japanese Yen’s recent selloff came to a screeching halt during the Asian trading session, as investors decide to wait and see if the central bank would follow through on what many analysts believe will be an aggressively loose monetary policy or if they will disappoint yet again.
The Japanese Yen continues to be under heavy and widespread sell pressure as market players await the outcome of this week’s policy setting meeting by the Bank of Japan.