Fancy Gains, Strengthened by Europe’s Woes

Yet innumerable downgrade of a certainty ranking of a European reign was announced. This circumstance Spain’s assessing was die by Moody’s banker Service, moulding traders shun gamble further analyze for safety of the Japanese currency.

Moody’s bad off Spain’s confidence adjudjing by two notches to A1 from Aa2. The outlook stayed gainsaying. The adjudjing grounds explained that the nowadays loose headway scene now the nation’s economy is fresh threatened by the money instability of the Eurozone. The bill from Eurostat tomorrow is expected to ring in that the consumer intuition repercussion Europe reduce from -19 impact September to -20 network October, the lowest tear down through regal 2009.

USD/JPY fell from 76.81 to 76.67 pronto considering of 2:08 GMT. EUR/JPY was at 105.54 closest dropping from 105.64 to 105.31 today.

Japanese Yen Strengthens vs. Euro on Korean Conflict

The Japanese yen rose today against the euro after it declined previously as the United Nations called for the talks with North Korea about its attack on the South Korean island, supporting the Asian equities and reducing the demand for the haven.

Yen Rebounds After Previous Decline as China May Cool Economy

The Japanese yen rose today, before returning to the opening level, on the speculation that the accelerating inflation in China would prompt the government to take steps to cool the economy.

Yen Continues to Strengthen, Intervention May Be Possible

The Japanese yen continued to rise today as the Group of Twenty meeting last week hasn’t provided decision, which could change the behavior of the currencies.

The Bank of Japan confirmed its readiness to intervene in order to weaken the currency for protection of the nation’s exporters. Japan’s companies already reported the earnings, which declined because of the stronger yen. The analysts think the central bank wouldn’t intervene in the near term, attempting to gauge the influence of the strong currency on the economy before taking any significant actions.

Yen Reaches New Decade Highs on Forex Risk Aversion

The expectations for the worsening of the global economic situation in the developed nations fueled the risk-averting mood in the foreign exchange market, pushing the Japanese yen to the new yearly maximums today.

The yen reached its new record high level against the US dollar since June 1995 and the strongest level against the euro since September 2001. A three-month high was reached against the Great Britain pound. As almost always with the yen, the reason for the gains lies not in the exceptional growth rates of the country but in the global risk aversion, which once again begins dominating the minds of the traders. The commentaries of the officials and the economic analysts that explicitly signal a second wave of the crisis don’t leave a chance for the high-yielding currencies against the safe haven currencies (such as yen).

Japanese Yen Strengthens on Renewed Demand for Safety

Japanese yen has risen today as the renewed concerns that the recovery of the global economy is losing the traction fueled the demand for the safer assets.

The experts said that Federal Reserve was expected to increase its purchasing of the bonds as the US economy may weaken. The recent improvement of the sentiment on the global markets was not strong enough to completely remove the concerns for the global economy. The yen also strengthened as the concerns, that the policy makes will intervene to limit the currency’s gains, eased.

The gains of the yen were limited, nevertheless, by the rally of the stocks. The Standard and Poor’s 500 Index gained 0.5 percent, following the previous decline.

Japanese Yen Declines vs Dollar and Pound

Today the Japanese yen weakened against the US dollar and the Great Britain pound and traded near the opening level versus the euro as the traders consider the possibility of the intervention by the Bank of Japan in order to curb the currency’s gains.

The Japanese currency gained on the concern for the global economic recovery, spurred by the dovish statement of the Federal Reserve this week. The problem is that the strong currency may hurt the Japanese exporters, and thus harm Japan’s economic growth. The BoJ policy makers acknowledged this problem and said that they would monitor the currency markets to evaluate the impact of the yen’s moves on Japan’s economy.

The minutes of the Monetary Policy Meeting of the Bank of Japan Policy Board said:

Dollar Strengthens on Services & Employment

The currency of US rose today against the Japanese yen and the euro after the reports showed that the US employers added more jobs than expected and the service industries expanded with increasing pace.

The US non-farm payrolls increased by 42,000, as was reported by ADP Employer Services. The median forecast was the 38,000 growth. The non-manufacturing sector grew in July for the seventh consecutive month, as was shown by the non-manufacturing index, which registered 54.3 percent in July, compared to 53.8 percent registered in June. The figure above 50.0 indicates industry expansion, below indicates contraction.

The employment was the one of the main sources of concerns for the US citizens. Therefore, the good news from the labor market improved the outlook for the US economy significantly. The Federal Reserve acknowledges the slowdown of the economy, but may refrain from adding more stimulus after the reports suggested that the US economy is healthier than it looked previously.

EUR/USD traded near 1.3137 as of 17:13 GMT today after it opened at 1.3229. USD/JPY rose to 86.22 from 85.76 after slumping as low as 85.32.