By: Barbara Zigah
The Japanese Yen enjoyed broad gains in subdued early London trading, while the U.S. Dollar fared well against high-risk currencies on continued investor worries about the outcome of key U.S. earnings reports due out later this week, including second quarter results from J.P. Morgan Chase, Citigroup, Goldman and Intel. Also contributing to the Japanese Yen and the U.S. Dollars upward movement is the waning optimism of the markets that a fast turnaround of the global economy is imminent. Unwinding risk trade has continued to benefit the Yen, despite the recent news out of Tokyo that Japanese P.M. Taro Aso intends to hold a general election next month ending. As reported at 7:50 a.m. (BST), the Euro slipped to 128.54 Yen, a decline of .3%; the U.S. Dollar also lost against the Japanese Yen, trading at 92.20 Yen, a drop of .3%. Higher risk currencies took a harder hit against the Yen; the Australian Dollar fell to 71.34 Yen, a decline of 1%, the N.Z. Dollar also lost 1% versus the Yen. A drop of nearly .4% in the European equity markets, coupled with another decline in oil prices, quelled risk appetite, and higher-risk currencies including the New Zealand and Australian Dollars were down as a result. Against the U.S. currency, the Australian Dollar slipped to $0.7731, a loss of .7%; the N.Z. Dollar also traded down nearly .9% versus the greenback. The single currency Euro remained flat against the U.S. Dollar, trading at $1.3941.
JPY and USD see Broad Gains on Equity Market Decline, Falling Oil Prices
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.