Market News

Returning earlier gains, both the U.S. Dollar and the Japanese Yen declined in Asian trading today, as the volatility of China’s share prices rose, prompting investors to move back into commodity-linked, high yielding currencies.

As reported at 2:34 p.m. (JST) in Tokyo, the Japanese Yen saw broad gains in Asian trading today as share prices fell and risk appetite for higher-yielding currencies waned.

As reported at 9:03 a.m. in London, the Japanese Yen fell against both the single currency Euro and the U.S. Dollar as gains in equity markets whetted risk appetite and pointed investors toward high-risk/high-yield currencies.

Chinese share prices again are providing the momentum for the Japanese Yen’s movement versus other major currencies, as investors worry about the possibility of continued weakness in the market, and moved out of higher-risk currencies.

A recovery in global share prices whetted the risk appetite for high-yielding currencies and pushed the Japanese Yen down in trading today.

As reported at 3:30 p.m. (JST) in Tokyo, a 2.4% fall in share prices in Asia has helped to push the Japanese Yen higher in Shanghai trading today as cautious investors continue to be apprehensive about returning to their high-risk currencies and trimmed their short positions in the Yen.

As reported at 2:44 p.m. (JST) in Tokyo, the Japanese Yen slipped in choppy Asian trading today, falling from the highest levels hit so far this month versus both the single currency Euro and the U.S. Dollar, and experiencing diminished returns versus other commodity-linked currencies.

The Federal Reserve Bank of the United States concluded its policy meetings yesterday, and investors took their less-than-glowing report of the health of the U.S. economy as an indication that there is still a long way to go.

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.

The U.S. Dollar held steady versus the single currency Euro in London trading, while investors debated whether or not the greenback could continue the rally on the heels of the report last week of lower-than-expected job losses in the United States in July.

As reported at 8:23 a.m. (BST) in London, the U.S. Dollar held steady versus the Pound Sterling and the single currency Euro, staying close to multi-month lows while investors take a wait-and-see approach to policy decisions expected from the Bank of England and the European Central Bank (ECB).

The U.S. Dollar remains near the lowest price of the year versus the single currency Euro in Asian trading today, generally attributed to improvement in the overall health of the global economies.

The Australian Dollar approached a 10-month high versus the Japanese Yen and the U.S. Dollar following the news from the Australian central bank that key interest rates would remain unchanged.

The new FIFO regulation issued by the NFA has officially come into effect. If you are not familiar, you need to read about it here.

With the global markets awaiting a surfeit of economic data out of the United States, the U.S. Dollar Index closed in on the lowest point of the year versus a basket of six major currencies in Asian trading today.