AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
Market Review - 13/11/2008 23:03 GMT
Japanese yen tumbles on the rally in U.S. stock markets
The Japanese yen fell sharply against major currencies due to the late rally in U.S. stock markets as bargain hunters rushed back into the market to scoop up beaten-down shares and prompted investors to buy back higher-yielding assets.
Earlier in the day, Fed's Stern said U.S. Federal Reserve has taken appropriate action to stem the worst credit crisis in decades but the situation highlights the urgent need for reforms. Stern said crisis resolution efforts have made the 'too big to fail' problem worse. U.S. stock markets extended their early decline after his comments as well as the release of much weaker-than-expected U.S. jobless claims data (516,000 versus the expectation of 484,000) before staging a late strg rally.
Dow Jones industrial average index rallied by 552.59 points or 6.67% to end at 8835. The Standard & Poor’s 500 index rose sharply by 58.97 points or 6.92% to close at 911.27. The Nasdaq Composite index surged by 97.49 points or 6.50% to finish at 1596.70.
The greenback rose against the Japanese yen earlier from 94.53 to 96.43 on Thursday after the Reserve Bank of Australia said it intervened to support its currency, fueling speculation other central banks may follow suit. Japan's Finance Minister Shoichi Nakagawa said abrupt currency moves are ‘undesirable’ and a stronger yen hurts domestic stock investors. He said last month Japan may intervene for the first time in four years. The U.S. currency rallied in late U.S. session to 98.30 due to active cross selling in jpy.
The single currency fell earlier to 1.2388 after the release of German GDP report, adding to speculation that the European Central Bank will cut interest rates further. Germany's gross domestic product shrank 0.5% in the third quarter after contracting 0.4% in the previous three months. Euro rallied to 1.2857 against the dollar in late U.S. session on renewed cross buying especially versus the Japanese yen. The British pound tumbled to 1.4560 and then rallied to 1.4899 on short-covering.
Friday will see the release of German CPI and HICP, eurozone GDP, HICP, U.S. retail sales, University of Michigan survey and business inventories. Investors are also focusing on the speeches from ECB’s Trichet and Fed’s Bernanke.
Japanese yen tumbles on the rally in U.S. stock markets
The Japanese yen fell sharply against major currencies due to the late rally in U.S. stock markets as bargain hunters rushed back into the market to scoop up beaten-down shares and prompted investors to buy back higher-yielding assets.
Earlier in the day, Fed's Stern said U.S. Federal Reserve has taken appropriate action to stem the worst credit crisis in decades but the situation highlights the urgent need for reforms. Stern said crisis resolution efforts have made the 'too big to fail' problem worse. U.S. stock markets extended their early decline after his comments as well as the release of much weaker-than-expected U.S. jobless claims data (516,000 versus the expectation of 484,000) before staging a late strg rally.
Dow Jones industrial average index rallied by 552.59 points or 6.67% to end at 8835. The Standard & Poor’s 500 index rose sharply by 58.97 points or 6.92% to close at 911.27. The Nasdaq Composite index surged by 97.49 points or 6.50% to finish at 1596.70.
The greenback rose against the Japanese yen earlier from 94.53 to 96.43 on Thursday after the Reserve Bank of Australia said it intervened to support its currency, fueling speculation other central banks may follow suit. Japan's Finance Minister Shoichi Nakagawa said abrupt currency moves are ‘undesirable’ and a stronger yen hurts domestic stock investors. He said last month Japan may intervene for the first time in four years. The U.S. currency rallied in late U.S. session to 98.30 due to active cross selling in jpy.
The single currency fell earlier to 1.2388 after the release of German GDP report, adding to speculation that the European Central Bank will cut interest rates further. Germany's gross domestic product shrank 0.5% in the third quarter after contracting 0.4% in the previous three months. Euro rallied to 1.2857 against the dollar in late U.S. session on renewed cross buying especially versus the Japanese yen. The British pound tumbled to 1.4560 and then rallied to 1.4899 on short-covering.
Friday will see the release of German CPI and HICP, eurozone GDP, HICP, U.S. retail sales, University of Michigan survey and business inventories. Investors are also focusing on the speeches from ECB’s Trichet and Fed’s Bernanke.
