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Market Review - 28/09/2009 20:50 All times in GMT
Yen rises to 8-month high on Japan Finance Minister's comments
The Japanese yen rose briefly to its 8-month high against the dollar on Monday morning due to Japan Finance Minister Hirohisa Fujii's comments and decline in regional equities (quarter-end repatriation from exporters also gave support to the yen). Before Tokyo opening, Fujii gave comments that 'the Japanese currency’s moves are not excessive' and MoF will maintain a 'non-intervening' stance on the currency, the comments sent the yen to as high as 88.23 versus the greenback. However, price rebounded from there later as Fujii clarified that the MoF had not approved of the yen's rise and FX rates should move in a stable manner, the pair then traded narrowly for the rest of the day and recovered its intra-day losses.
The single currency fell sharply in Asian morning from 1.4721 to an intra-day low of 1.4565 as regional bourses declined (partly due to yen's rose which led to risk aversion), however, price then recovered in European morning due to short-covering amid thin trading volume. Euro later rebounded to as high as 1.4680 with the support in strong DOW (the index opened up above 100 points) despite ECB President Trichet's comment that 'it is extremely important to have a strong dollar'. However, price retreated on cross selling versus sterling in late U.S. session.
The British Pound fell in line with dollar's broad-based strength in Asia and tumbled to as low as 1.5770, price then rebounded from there on short-covering and traded sideways for the rest of the day as there was no major economic data out and the market volume was thin. Despite euro's fell in late U.S. session, sterling was relatively stable due to cross-unwinding in Eur/gbp (which retreated from 0.9304 to below 0.9200 level).
Economic data to be released on Tuesday include:
National CPI and Tokyo CPI in Japan; import price index in Germany; GDP, current account, CBI distribution trade and consumer confidence in U.K.; business climate and economic sentiment in eurozone.
Yen rises to 8-month high on Japan Finance Minister's comments
The Japanese yen rose briefly to its 8-month high against the dollar on Monday morning due to Japan Finance Minister Hirohisa Fujii's comments and decline in regional equities (quarter-end repatriation from exporters also gave support to the yen). Before Tokyo opening, Fujii gave comments that 'the Japanese currency’s moves are not excessive' and MoF will maintain a 'non-intervening' stance on the currency, the comments sent the yen to as high as 88.23 versus the greenback. However, price rebounded from there later as Fujii clarified that the MoF had not approved of the yen's rise and FX rates should move in a stable manner, the pair then traded narrowly for the rest of the day and recovered its intra-day losses.
The single currency fell sharply in Asian morning from 1.4721 to an intra-day low of 1.4565 as regional bourses declined (partly due to yen's rose which led to risk aversion), however, price then recovered in European morning due to short-covering amid thin trading volume. Euro later rebounded to as high as 1.4680 with the support in strong DOW (the index opened up above 100 points) despite ECB President Trichet's comment that 'it is extremely important to have a strong dollar'. However, price retreated on cross selling versus sterling in late U.S. session.
The British Pound fell in line with dollar's broad-based strength in Asia and tumbled to as low as 1.5770, price then rebounded from there on short-covering and traded sideways for the rest of the day as there was no major economic data out and the market volume was thin. Despite euro's fell in late U.S. session, sterling was relatively stable due to cross-unwinding in Eur/gbp (which retreated from 0.9304 to below 0.9200 level).
Economic data to be released on Tuesday include:
National CPI and Tokyo CPI in Japan; import price index in Germany; GDP, current account, CBI distribution trade and consumer confidence in U.K.; business climate and economic sentiment in eurozone.
