By: Barbara Zigah
The Japanese Yen slipped further from the 9-month trough struck yesterday as end of the month buying by Tokyo-based exporters helped propel it through a correction. Nonetheless, currency analysts say that the Yen is likely to remain soft given the recent events which include surprise easing measures by the Bank of Japan, a record trade deficit and a depletion of the current account surplus. As reported at 12:08 p.m. (JST) in Tokyo, the Yen was trading against the U.S. Dollar at 80.24 Japanese Yen, a decline of 0.4% from the 81.66 Yen peak struck on Monday.
In the Eurozone, the Euro rally appears on the verge of petering out as investors wait for the ECB to release its next LTRO. News that S&P downgraded Greek debt to “selective default” had little effect on the currency which stood recently at $1.3410, up from U.S. late trading in New York of $1.3397. Last Friday, the EUR/USD struck a 3-month high of $1.3487. As of now, immediate support is being seen at $1.3357 to $1.3366. Recent forecasts of the LTRO outcome have been markedly reduced to only around the same amount as the previous offering, i.e. around €500 billion; anything significantly greater than that is likely to have a more significant effect on weakening the Euro.
Yen Slips on Month-End Buying Spree
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.