By: Barbara Zigah
With the nearly 3% fall of share prices on the .SSEC in China, investors liquidated their Yen short positions in advance of the conclusion of the Federal Reserve policy meetings and the expected policy statement release later today. Market uncertainty about the policy decision from the United States’ central bank had investors worrying about holding onto their big positions. According to one forex trading manager in Tokyo, the only certainty about the Federal Reserve’s policy decision is that long positions appear to be more vulnerable to liquidation.
As reported at 2:43 p.m. (JST) in Tokyo, the Japanese Yen traded at 95.55 Yen versus the U.S. Dollar, an increase of .5% over yesterday’s late U.S. trading. The Yen also gained against the Euro, trading at 135.19 Yen, a gain of .5%; versus the Australian Dollar, the Yen traded at 78.74 Yen, a gain of nearly 1%.
The United States Federal Reserve Bank concludes its 2-day policy meeting today, and is expected to release a statement at 1:15 p.m. (EDT). Last week’s release of better than anticipated July labor data has lead to growing optimism that the economic recovery is on track. Analysts expect the policy decision to indicate that the Federal Reserve is prepared to begin withdrawing some of their unconventional stimulus measures, including the possibility of a rate hike during the first quarter of 2010 and the cessation of the Treasury buying program.
With All Eyes on Federal Reserve, Yen Rises Broadly
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.