FXstreet.com

Daily Analysis

0

0

Yen lower as Lehman given support

Wed, Sep 10 2008, 09:47 GMT
by Benny Menashe

Finotec Group Inc.


EUR/USDUSD/JPYGBP/USDUSD/CHF
1.4545109.051.79051.1885
Resistance1.443108.451.7781.1605
1.44108.11.77251.146
1.4095106.651.75631.1215
Support1.4045106.551.75051.113
1.4015105.551.7471.101

The Yen was down from a 13 month high against the euro on Wednesday on news that Korea Development Bank was seeking a controlling interest in Lehman Brothers. The Japanese currency was buoyed on Tuesday as Lehman’s share price plunged the most in one day and carry traders unwound their positions funded in yen. However, with the news that a South Korean state-run bank will look to buy a stake in Lehman, investors increased their holdings of higher-yielding assets funded in Yen. ``This report is a big relief for risk appetite,'' said the head of foreign exchange strategy for Japan at Royal Bank of Scotland in Tokyo. ``The net impact will be to send the yen lower.'' The EUR/JPY was trading at 152.10 at 8.13am GMT

Meanwhile in London, Sterling was near a 2 ½ year low against the dollar as report indicated that the UK was now experiencing negative growth for the first time in over 10 years. The National Institute for Economic and Social Research indicated that GDP fell 0.2% in the last three months and 0.1% in Q2. A faltering economy has increased speculation that the BOE will cut rates, pushing the pound lower. ``We're just at the beginning of this downturn'' and inflation ``certainly hasn't peaked,'' the Deputy Governor of the Bank of England commented. At the same time, ``we're very aware of the risk of perhaps overdoing it and causing an unnecessary slowdown in activity,'' he said. Cable was trading at 1.7667 as of 8.22am GMT.

Pie


Today's Economic Events

Time Event Currency Period Previous Forecast Significance
23:50Core Machinery Orders m/mJPYJul-2.60%-4.10%2
21:00Interest Rate StatementNZDJul8.00%7.75%4
14:35Crude Oil InventoriesUSD-1.9M2
12:30Labor Productivity q/qCADQuarterly-0.30%2
8:30Trade BalanceGBPJul-7.7B-7.5B2
7:00ECB President Trichet SpeaksEUR3
6:45Industrial Production m/mEURJul-0.40%0.10%2
6:45Trade BalanceEURJul-5.6B-5.05B2
5:00Leading Indicators m/mJPYJul-1.70.62


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

Legal disclaimer and risk disclosure

FINOTEC Trading’s Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.

Related reports

Weekly Market Commentary - Libor and Official Interest rates are at their narrowest by Mizuho Corporate Bank
Fri, Jul 3 2009, 14:33 GMT

London Gold Market Report by BullionVault.com
Fri, Jul 3 2009, 13:24 GMT

Daily Market Report - Risk aversion was the main theme of yesterday's trading session by Wachovia
Fri, Jul 3 2009, 12:25 GMT

Asia Market Update - Most Asian equities indices track the US session declines as nonfarm payrolls data disappoints by TradeTheNews.com
Fri, Jul 3 2009, 11:55 GMT

Daily Analysis - The Dollar gains as the markets tumble and investors seek a safe haven by Finotec Group Inc.
Fri, Jul 3 2009, 11:47 GMT

eurjpy, usdjpy

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account
IG Markets
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.