Market News

The Japanese Yen struck new lows versus its major rivals, the U.S. Dollar and the common currency Euro during the Asian trading session and is poised to record the worst single month’s performance during this year.

The Dollar fell to a near 1-month trough versus the common currency Euro following the release of new economic data from the U.S. which only added to the uncertainty revolving around the Federal Reserve Bank’s decision to withdraw or scale back its quantitative easing scheme.

The Euro slipped from a recently struck 4-year peak versus the Japanese Yen following comments made by an official of the European Central Bank which effectively tanked the common currency.

The Japanese Yen began the trading week at a fresh 4-year trough against the common currency Euro as well as a 4-month low against its U.S. rival, driven there as a result of the currency trade funding crowd.

The Japanese Yen slipped to a 4-month trough against its U.S. and European counterparts during Friday’s trading session in Asian as pressure rises against the safe haven currency.

The U.S. Dollar edged higher, hitting a 2-month peak against its Japanese rival following the release of Fed minutes which clearly indicated that not every FOMC member supports the continuation of its ultra loose monetary policy.

The U.S. Dollar dipped against the common currency Euro following comments made by the current Fed chief, Ben Bernanke, who confirmed investors’ suspicions that the Fed would maintain its current ultra-loose policy for an extended period of time.

The U.S. Dollar’s momentum was stymied during the Asian trading session on Tuesday on expectations of a prolonged QE program by the Federal Reserve with many investors already accepting as fact the likelihood that incoming Fed Chief Janet Yellen will maintain the ultra loose monetary policy which currently exists at least through March 2014.

The U.S. Dollar and common currency Euro remained close to recently struck highs versus the Japanese Yen during Monday’s Asian trading session, however continuing uncertainty about the U.S. Federal Reserve’s position on QE tapering will mean that the greenback’s gains are likely to be limited.

The Japanese Yen was mired close to a 2-month trough versus its main rival, the U.S. Dollar, following comments made by Japan’s Finance Minister who said that currency intervention must be included as one of the government’s policy tools.

Market players are once again revisiting the likelihood that the U.S. Federal Reserve will maintain the status quo as regards QE tapering.

The U.S. Dollar was boosted up to a 2-month high versus the Japanese Yen as market players begin to reassess the Federal Reserve’s likely position regarding QE tapering given last week’s unexpectedly strong outcome of U.S. labor data.

Following last week’s heavy selloff, the Euro managed to hold onto recent gains during the Asian trading session though investors continue to curtail their bearish positions.

The U.S. Dollar got a well-received boost following Friday’s release of surprisingly upbeat labor data from the U.S. Department of Labor which revived investor expectations that the Fed might reconsider tapering its QE program in December.

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