• Home ::
• Technical ::
• Market View ::
• Daily Analysis

• Send
• Print
• Add To
• Rss

Daily Analysis

Volatile trading before the weekend leads traders to cash in

Fri, Jun 27 2008, 13:06 GMT
by Benny Menashe

Finotec Group Inc.

The yen headed for a seventh weekly decline against the euro, the longest losing streak since May 2007, on speculation Japanese workers are spending their summer bonuses on overseas assets offering higher yields. ``Japanese investors are sending money overseas constantly as the summer bonus season is starting,'' said Kei Katayama, who helps oversee the equivalent of about $1 billion at Daiwa SB Investments Ltd. in Tokyo. ``Our sales of investment trusts are doing fine.''

Japan's currency is currently trading at 167.91 per euro as of 7:40 am, GMT from 168.30 yesterday in New York, when it touched a record low of 169.46. It has fallen 0.4 percent this week. The yen is currently trading at 106.68 per dollar from 106.81 yesterday, when it rose to 106.56, the highest level since June 11. The dollar is at $1.5748 per euro from $1.5757 yesterday, when it dropped to $1.5768, the weakest since June 9.

The dollar steadied versus the euro on Thursday, after a Federal Reserve statement scaled back expectations for near-term monetary tightening and as weak French consumer confidence knocked the single currency. The Fed voiced greater concerns about inflation in the statement accompanying its two-day policy meeting but also said it expected price pressures to moderate this year.

U.S consumer spending probably rose in May by the most in six months as tax rebates enabled households to overcome soaring fuel bills, economists said before a report today. After filling up their autos' gas tanks, Americans used the stimulus checks to buy electronics, clothes and furniture last month, helping to keep the economy expanding. At the same time, the slump in confidence, a loss of jobs and tighter credit raise the risk that growth will falter once the rebates' effect fades.

The UK’s final GDP came out slightly lower than expected at 0.3% from a forecast of 0.4%, the new sent the sterling stumbling to 1.9801 but has since sot back up to 1.9870 on news the Current Account trade balance had done better than expected at -8.4 from an expected -12.0.

Today's Economic Events

Published on  Fri, Jun 27 2008, 13:13 GMT

Archive

• Dollar down on speculation over US data
  Published On Wed, Aug 27 2008, 10:26 GMT
• The Dollar's rise not over yet says Lehman
  Published On Tue, Aug 26 2008, 10:59 GMT
• Dollar rises as crude oil declines on low demand
  Published On Mon, Aug 25 2008, 11:38 GMT
• Dollar recovers slightly ahead of Bernanke speech
  Published On Fri, Aug 22 2008, 10:39 GMT
• Dollar fall against majors as a manufacturing slump is predicted
  Published On Thu, Aug 21 2008, 10:45 GMT

[ View All ]

• More Reports from this Author
• More Reports from this Contributor

Finotec  | Global financial trading center, 1 Grivas Digheni and Chrysanthou, 3035 Mylona P.O.B 58007, Limassol
http://www.finotec.com/ | support@finotec.com