Daily Analysis
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Yen lower as Lehman given support
Wed, Sep 10 2008, 09:47 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.4545 | 109.05 | 1.7905 | 1.1885 | |
| Resistance | 1.443 | 108.45 | 1.778 | 1.1605 |
| 1.44 | 108.1 | 1.7725 | 1.146 | |
| 1.4095 | 106.65 | 1.7563 | 1.1215 | |
| Support | 1.4045 | 106.55 | 1.7505 | 1.113 |
| 1.4015 | 105.55 | 1.747 | 1.101 |
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.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 23:50 | Core Machinery Orders m/m | JPY | Jul | -2.60% | -4.10% | 2 |
| 21:00 | Interest Rate Statement | NZD | Jul | 8.00% | 7.75% | 4 |
| 14:35 | Crude Oil Inventories | USD | -1.9M | 2 | ||
| 12:30 | Labor Productivity q/q | CAD | Quarterly | -0.30% | 2 | |
| 8:30 | Trade Balance | GBP | Jul | -7.7B | -7.5B | 2 |
| 7:00 | ECB President Trichet Speaks | EUR | 3 | |||
| 6:45 | Industrial Production m/m | EUR | Jul | -0.40% | 0.10% | 2 |
| 6:45 | Trade Balance | EUR | Jul | -5.6B | -5.05B | 2 |
| 5:00 | Leading Indicators m/m | JPY | Jul | -1.7 | 0.6 | 2 |
Published on Wed, Sep 10 2008, 09:52 GMT
Archive
- The Dollar gains as the markets tumble and investors seek a safe haven
Published On Fri, Jul 3 2009, 11:47 GMT - Dollar rises as the market are down and China still intends to use the greenback
Published On Thu, Jul 2 2009, 11:36 GMT - The YEN declines versus the Dollar and the Euro on Tankan Report
Published On Wed, Jul 1 2009, 11:45 GMT - Sterling rockets after good housing data and a weak Dollar
Published On Tue, Jun 30 2009, 11:30 GMT - The Dollar rises against most majors as China say the currency may still dominat
Published On Mon, Jun 29 2009, 10:33 GMT
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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
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Fri, Jul 3 2009, 11:47 GMT
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