Market News

The Australian unemployment report beat analyst’s forecasts last month, with the jobless rate falling .1% to 5.8%, raising investor expectations that another interest rate hike from the current 3.75% will be forthcoming

The single currency Euro continued its decline for the third consecutive day following the news that Fitch Ratings Agency had downgraded the debt rating of Greece from A- to BBB+ with the possibility of further downgrades in the future.

Investor speculation following the stronger than expected recent U.S. jobs data, that the U.S. Federal Reserve Bank might consider raising key interest rates from their historic lows, was dashed. Yesterday, confirmation came from the head of the Federal Reserve Bank, Ben Bernanke, as well as N.Y.

The U.S. Dollar slipped versus the Japanese Yen in Asian trading today, as exporters from Japan booked profits after Friday’s sharp gain in the U.S. currency which was precipitated by better than predicted employment data from the United States.

The U.S. Dollar slipped versus the Japanese Yen in Asian trading as market players booked profits on the U.S. currency’s rebound in advance of today’s release of U.S. labor data.

Both the U.S. Dollar and the Japanese Yen slipped in Asian trading today following the announcement by Bank of America that it intends to repay the TARP (Troubled Asset Relief Program) funds over the coming week, to the tune of $45 billion.

The Japanese Yen struggled while the U.S. Dollar held steady in Asian trading today against high-yielding currencies such as the Australian Dollar and the single currency Euro. Investors’ risk appetite was also boosted by the recent rises in the commodity and stock markets.

Investor expectations were dashed when the Bank of Japan failed to take bolder measures in an effort to halt the Japanese Yen’s rise; according to the communiqué, the BOJ will be introducing a facility to provide fixed rate funds for a 3-month period at a rate of .1%.

Market fears about the potential default of mounting debt in the United Arab Emirates has been assuaged, following the central bank’s move to provide emergency assistance to Dubai’s financial institutions.

The Japanese Yen continues to rise versus the U.S. Dollar, touching on its highest trade in 14 years. As reported at 3:31 p.m. (JST) in Tokyo, the Yen traded at 84.82 Yen, the highest point since 1995, before retreating to 86.05 Yen, a .6% rise on the day.

Investor speculation that Japan’s central bankers will permit the continued appreciation of the Japanese Yen led to that currency’s 14-year peak against the U.S. Dollar in trading in Asia.

In Asian trading today, the U.S. Dollar fell to its lowest point in 7-weeks versus the Japanese Yen in Asian trading today. As reported at 1:53 p.m. (JST) in Tokyo, the U.S. Dollar slipped to 88.20 Yen, approaching the 88.01 Yen low of early October.

Following four downtrending days attributed to a rising stock market and record setting gold prices, the Australian Dollar finally saw broad gains in Asian trading today.

Global Equity Markets were mixed across the board yesterday. In the U.S, the DJIA recovered most of its losses after losing nearly 100 points following the poorer than expect housing data numbers.