Asia Session – August 30, 2010 1:54 AM
August 30, 2010
After last week’s series of missteps and rumors of meetings that ultimately never materialized, the Bank of Japan pulled itself up from its bootstraps and finally followed through with an announced emergency policy meeting. The news of the meeting was met with the same reactions as last week, shooting the USD/JPY pair to session highs just short of 85.90. The meeting results failed to impress however and the yen then firmed back to 85.30 although still far from last week’s highs under 84.30. Follow the BoJ meeting it was announce that the central bank would increase its fixed rate funding supply to 30 trillion yen from 20 trillion yen. The BoJ also extended the duration of loans to banks from 3 to 6 months, all of this accomplished amidst the backdrop of a collective sigh from traders who expected more from the central bank. The Japanese central bank capped the day off with leaving the overnight call rate unchanged at 0.10%.
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U.S. Dollar Mixed in Currency Trading
August 27, 2010
Forex trading with the greenback
The U.S. dollar is mixed in currency trading today, thanks to a bit of uncertainty and rangebound trading. Earlier, the U.S. dollar did move a little bit higher against the euro, but that is done with now, thanks to the latest out of the U.S. with regard to revised GDP.
Right now, the dollar is down slightly against the euro and the Australian dollar. However, it is moving higher against the U.K. pound and the Japanese yen. Even these moves, though, are rather slight.
For now, there is some waiting. Forex traders want to know what Ben Bernanke will say today at a speech scheduled for 10 a.m. Eastern. Forex traders are looking for clues about what Bernanke thinks about the economic forecast, and for indications that economic policy could change in the relatively near future.
See Also
- Forex Trading with the Dollar
Currency trading on the FX market
Forex Traders Await Ben Bernanke’s Speech
August 27, 2010
Currency trading on the FX market
The currency market is rather quiet today, as forex traders await Ben Bernanke‘s speech. Bernanke is scheduled to speak at 10 a.m. Eastern in Jackson Hole, Wyoming, at a symposium.
Bernanke is expected to share his views of the economy, as well as his stance on possible changes to economic policy. However, with Second Quarter GDP revised down, there is some speculation arising that his outlook for the economy will not be overly optimistic.
As a result of the waiting, currencies are mostly rangebound right now. Forex traders will be waiting to see what Bernanke says, and then likely to make moves based on what they see happening with U.S. economic policy in the near future.
See Also
- Economy and Forex Trading
Currency market news for forex traders
London Session – August 27, 2010 8:12 AM
August 27, 2010
Major currencies consolidated in narrow ranges ahead of top tier U.S. economic data and the highly anticipated Bernanke speech at Jackson Hole. Rhetoric in Japan continued overnight adding pressure to the yen. Prime Minister Kan stated that Japanese officials are willing to take “bold” action to stem the currency’s advance as it “movements in the currency market have a negative impact on economic and financial stability”. Finance Minister Noda said the currency situation is ‘severe’ and reiterated that the government is prepared to take appropriate action when necessary. The comments come as no surprise and seem to be more of a reminder to the market of the willingness of Japanese officials to take action. USD/JPY gained to around 84.85 on a softer yen and the Nikkei 225 advanced by +0.95%. Full text »
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Asia Session – August 27, 2010 3:26 AM
August 27, 2010
FX markets seemed to take a break tonight as they await Chairman Bernanke’s speech as he addresses a conference in Jackson Hole, Wyoming. Without any easy options left, Bernanke must try to prevent another recession by persuading people and businesses to feel confident enough about the future to spend more today. If they don’t feel reassured , we could see the equity markets continue to tumble lower ,probably bringing the risk trade lower with it. The NIKKEI is down about -0.8%, following the lead set by the U.S. equity markets. The session saw little currency movements. Usd/jpy has traded in a 84.30-55 range. The only move was off the lows when a statement from a Japanese official saying they were to hold a news conference on Friday to take steps to fight the YEN rise. Usd/jpy moved to from 84.35 to 84.55 on that. All the pairs seemed to have about 30 pip ranges. In the upcoming London session the highlight should be the UK GDP @ 4:30am EST Full text »
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Asia Session – August 26, 2010 11:39 PM
August 26, 2010
FX markets seemed to take a break tonight as they await Chairman Bernanke’s speech as he addresses a conference in Jackson Hole, Wyoming. Without any easy options left, Bernanke must try to prevent another recession by persuading people and businesses to feel confident enough about the future to spend more today. If they don’t feel reassured , we could see the equity markets continue to tumble lower ,probably bringing the risk trade lower with it. The NIKKEI is down about -0.8%, following the lead set by the U.S. equity markets. The session saw little currency movements. Usd/jpy has traded in a 84.30-55 range. The only move was off the lows when a statement from a Japanese official saying they were to hold a news conference on Friday to take steps to fight the YEN rise. Usd/jpy moved to from 84.35 to 84.55 on that. All the pairs seemed to have about 30 pip ranges. In the upcoming London session the highlight should be the UK GDP @ 4:30am EST Full text »
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New York Session – August 26, 2010 4:38 PM
August 26, 2010
Risk sentiment gradually drifted lower throughout the session after better than expected U.S. labor data gave risk appetite an initial boost. Weekly jobless claims printed lower than the expected 490K at 473K down from the prior week’s 504K (revised higher from 500K). Though the number was a positive surprise, it still remains at elevated levels which does not bode well for the economic outlook. All eyes are now focused on Fed Chairman Ben Bernanke’s speech tomorrow in Jackson Hole as well and U.S. 2Q GDP figures. The consensus for U.S. 2Q GDP is for 1.4% down from the prior 2.4% however there is much buzz from respected names and major banking institutions for a disappointing print. EUR/USD rallied as high as 1.2760/65 on a softer dollar before finding resistance and pulling back to current levels around 1.2725. USD/JPY dropped back under 84.50 to current levels around 84.40. Full text »
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Go Long on the Swiss/Yen: FX Strategist
August 26, 2010
Kathy Lien, director of currency research at GFT, says her favorite play for 2010 is going long on swiss-yen as she forecasts it will hit 85 by the end of the year. She speaks to CNBC’s Martin Soong, Adam Bakhtiar and Bernard Lo.
Coordinating Yen Intervention
August 26, 2010
Airtime: Sun. Aug. 22 2010 | 6:10 PM ET Kathy Lien, director of currency research at GFT, says Japan, Europe and the U.S. must coordinate intervention in order to successfully curb yen appreciation. She tells CNBC’s Martin Soong & Adam Bakhtiar that if d
What Does Japan Need For Growth?
August 26, 2010
Kathy Lien, director of currency research at GFT, says as an export-dependent economy, Japan needs its trade partners to bounce back to stimulate its growth. She speaks to CNBC’s Martin Soong and Adam Bakhtiar.
