The dollar hit a three-month high against the yen on Monday, as the yen remained pressured by persistent speculation that the Bank of Japan may decide on more monetary stimulus at a policy meeting next week. The dollar climbed to as high as 79.82 against the yen, its highest level since mid-July.
Traders have started to focus more on fundamentals such as economic growth and short-term interest rates. That shift, just getting underway, could take the shine off the soaring USD in the coming months. A stronger currency is important to the U.S. because it entices foreign investors to Treasury debt that finances the nation’s record budget deficit. The downside is that it may restrain profit growth at companies with international sales by making U.S. exports more expensive.
With no major news events regarding the United Sates scheduled for today, traders will have to look to other sources to determine which way the troubled currency is headed. The Canadian Retail Sales figures are one indicator. If the figures come in as better than expected and investors are encouraged by Canada’s pace of recovery, the dollar will likely to rise further against the JPY in afternoon trading.
While November and December are generally good months for stocks, markets are struggling to move further up. So far earnings have shown no big surprises. European markets trailed lower when wall street opened since companies, while managing to stay fairly in line with their earnings expectations, showed weak revenues due to difficult global conditions. The CAC 40 dropped 0.61%, The EURO STOXX 50 fell 0.44% while the FTSE100 managed to limit its loss to 0.22% One market that outperformed was Greece. The Athens General Index managed to climb 2.68% on hopes that a new trench of the bailout will be awarded soon now that Greece is showing international lenders their Austerity measures program. The EURUSD managed to move up slightly and currently keeps flirting with the 1.3050 level.
While Asian markets managed to start the day of strong with a weakening Yen giving hope to investors that the Japanese companies might get a boost to their exports the sentiment turned after the American presidential debate and worries about Japanese utility companies’ dividends. Both presidential candidates said China will have to play by the same rules as everybody else and Romney added that he will label China a “currency manipulator” and claimed they are stealing American designs, patents and intellectual property. The Hong Kong Hang Seng index was closed, but the Shanghai Shenzhen index fell 0.88% and the Nikkei 225 dropped 0.1%.
Markets showed no clear direction while initially markets moved down the DJ30 finished 0.02% in the green and the S&P 500 managed to add 0.04%. While earnings drive the current market and good numbers for several tech companies managed to push American markets up in the last part of the trading session, many Americans were more interested in following Mitt Romney and Barrack Obama in their final debate before the U.S. presidential elections. The debate revolved around foreign policy where both candidates criticized the other of having a lack of experience and bad vision. According to an instant poll held immediately after the debate, Obama managed to beat Romney with a staggering 53% opposed to the meager 23% that felt Romney won the remaining 24% said it was a tie.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
No comments:
Post a Comment