The Japanese Yen’s recent sell off slowed during the Asian trading session though analysts don’t believe that the respite will be long lived as expectations for the Yen’s continued depreciation are rampant given an exceptionally dovish Bank of Japan. As reported at 12:12 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 95.85 Yen, a dip of 0.2% after profit-takers took advantage of the pair’s multi-year high of 96.71 Yen which was struck yesterday. So far this year, the greenback has gained more than 10% against the Japanese currency. One currency trader sees the potential for a little more slippage and profit taking but doubts that the pair will drop below 94.50 Yen.
The Pound Sterling took a pounding during the session and hit a 33-month trough against the U.S. Dollar, with the GBP/USD pair dropping to $1.4832 yesterday before recovering slightly to trade at $1.4933, a 02.% gain. Data showed that output from the U.K.’s manufacturing sector slipped in January at a pace unseen in nearly nine months suggesting that the economy may once again be in a recession, making it the third one in five years. One analyst believes that the Bank of England may be encouraged to push through additional easing measures even though such an act will likely result in a rise in inflation beyond the central bank’s threshold.
Yen Gets Respite from Profit Takers
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.