Market News

Despite a decline during the Asian trading session, the Japanese Yen managed to hold on to gains made on Thursday; the safe haven currency was bolstered by continuing investor concerns over mounting fiscal problems in Euro-zone countries and doubts over the pace of the worldwide economic recovery. Also helping the Japanese Yen was repatriation of the currency by Japanese importers in advance of the month’s end.

The single currency Euro fell to a new 1-year trough in Asian trading today, attributed largely to continuing investor concerns over the Euro-zone’s fiscal problems, and a round of selling by Japanese exporters, which triggered the fall.

Investor risk aversion following yesterday’s release of worse-than-expected consumer confidence data from the United States, helped to prop up the Japanese Yen, considered a “safe haven” currency

The U.S. Dollar traded within narrow ranges in Asian trading today, as traders await the Federal Reserve’s report to the U.S. Congress tomorrow. Some investors are speculating that Ben Bernanke, the Federal Reserve Bank Chairman, would quash rumors of possible monetary tightening, and have avoided the U.S. currency as a result.

In Asian trading today, the U.S. Dollar Index fell as investors continue to debate the U.S. Federal Reserve’s fiscal strategy, especially as regards the possibility that a key interest rate hike may occur sooner than expected.

In an oddly timed move, the U.S. Federal Reserve Bank directed that the U.S. discount rate, which is the rate at which the Federal Reserve lends to privately held U.S. banks, be raised to .75%, an increase of .25% effective Friday, the 19th of February.

The Fed raising its discount rate by 25 basis points to .75% shocked the markets earlier today. The US dollar after weakening during early US trade, promptly rallied at the news. The Fed appears to be making good on its word about starting to remove the excess stimulus measures from the economy. The prospect of the US hiking rates before the EU and other major developed countries has made investors dollar bullish. This change in sentiment can be seen in the USD/JPY as the pair reached a new high of 92.10 upon the news.

A recent report from The Wall Street Journal newspaper which suggested that the fiscal worries in Greece could spill over to other areas within the Euro-zone, precipitated the Euro’s fall in Asia today. Late last night, it was reported that some Italian municipalities took out derivative contracts, which if substantiated, could threaten public finances.

The single currency Euro rebounded in Asian trading today, despite continuing investor concerns over the Greek debt crisis. Some market players appear inclined to believe that the Euro’s broad decline has reached a turning point, and combined with the U.S. Dollar’s retreat, and whetted risk appetite, helped prop up the Euro against safe-haven currencies.

Despite continuing investor concerns over the heavily debt burdened nation of Greece, the single currency Euro inched up in Asian trading today, hovering close to a 9-month trough versus the U.S. Dollar. Once again, a meeting of finance ministers from the Euro-zone failed to produce a definitive plan to help those countries within the Zone which are fiscally troubled, including not only Greece, but Spain and Portugal.

The single currency Euro moved closer to a 9-month trough versus the U.S. Dollar in Asian trading today, as investor doubt grew as to whether or not European Union policymakers would help the heavily debt burdened nation of Greece.

Investor expectations were dashed when the European Union failed to provide concrete details of their rescue package for the heavily debt burdened nation of Greece.

With investor expectations that leaders of the European Union will lay out their proposal for a Greek bailout package when they meet later in the day in Brussels, the single currency Euro rose versus the Japanese Yen and the U.S. Dollar in Asian trading.

The U.S. Dollar slid versus the single currency Euro in Asian trading today, though it held close to the 8½ month peak struck last week. Until investors’ concerns are allayed about the fiscal well being of certain Euro-zone countries, the Euro will continue to be under heavy pressure.

Two day conference and exhibition aims to foster education among professional, beginner and institutional traders across the MENA region