Market News

The Japanese Yen slipped to a 4-month trough against its U.S. and European counterparts during Friday’s trading session in Asian as pressure rises against the safe haven currency.

The U.S. Dollar edged higher, hitting a 2-month peak against its Japanese rival following the release of Fed minutes which clearly indicated that not every FOMC member supports the continuation of its ultra loose monetary policy.

The U.S. Dollar dipped against the common currency Euro following comments made by the current Fed chief, Ben Bernanke, who confirmed investors’ suspicions that the Fed would maintain its current ultra-loose policy for an extended period of time.

The U.S. Dollar’s momentum was stymied during the Asian trading session on Tuesday on expectations of a prolonged QE program by the Federal Reserve with many investors already accepting as fact the likelihood that incoming Fed Chief Janet Yellen will maintain the ultra loose monetary policy which currently exists at least through March 2014.

The U.S. Dollar and common currency Euro remained close to recently struck highs versus the Japanese Yen during Monday’s Asian trading session, however continuing uncertainty about the U.S. Federal Reserve’s position on QE tapering will mean that the greenback’s gains are likely to be limited.

The Japanese Yen was mired close to a 2-month trough versus its main rival, the U.S. Dollar, following comments made by Japan’s Finance Minister who said that currency intervention must be included as one of the government’s policy tools.

Market players are once again revisiting the likelihood that the U.S. Federal Reserve will maintain the status quo as regards QE tapering.

The U.S. Dollar was boosted up to a 2-month high versus the Japanese Yen as market players begin to reassess the Federal Reserve’s likely position regarding QE tapering given last week’s unexpectedly strong outcome of U.S. labor data.

Following last week’s heavy selloff, the Euro managed to hold onto recent gains during the Asian trading session though investors continue to curtail their bearish positions.

The U.S. Dollar got a well-received boost following Friday’s release of surprisingly upbeat labor data from the U.S. Department of Labor which revived investor expectations that the Fed might reconsider tapering its QE program in December.

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The Euro struggled to gain traction during the Asian trading session in the wake of the surprise decision by the European Central Bank while the greenback’s gains were kept to a minimum as investors await the release later today of the all-important private sector payrolls data.

The common currency was trading close to a 1-week peak versus the U.S. Dollar and the Japanese Yen following the release of better than expected data from Germany which briefly tamped down investors’ expectations of an ECB rate cut.

The U.S. Dollar edged higher in the Asian session following the release of better than expected economic data which led to increased speculation that the Fed might rethink the timing of its QE tapering scheme.

The Euro held onto recently earned gains during the Asian trading session but as speculation that the European Central Bank might lower interest rates later this week, analysts expect that Euro demand will wane.