Action Forex

Brushing aside the escalating war of words by Japanese officials directed at the rising yen, risk-averse investors piled into the safe-haven currency Wednesday, pushing it to a new 15-year high against the U.S. dollar. The dollar fell to a fresh low of JPY83.34, compared with JPY83.80 late Tuesday in New

Asian equity markets are in the red for across the board for the second consecutive session, with broadbased losses in EU bourses and renewed weakness in US completing the cycle overnight. Once again, Japanese equities are leading the slump, falling over 2% as Japanese Yen makes new inroads to a

The US Dollar traded more with a risk aversion tone and weighed on the EUR/USD the Dollar gained against most pairs except however against the Japanese Yen and the Swiss Franc. The aversion followed through from a Wall Street Journal article which stipulates that EU banks understated there sovereign debt

Europe was the market's major focus overnight as last week's positive jobs data faded into the distance and risk aversion was back in vogue. European sovereign debt concerns reemerged as debt spreads widened following a WSJ article claiming that the European bank stress tests had under estimated the exposure to

The USDJPY made a new 15 year low after the pair touched 83.35 this morning. Even after Japan's Finance Minister Noda said the government was watching markets closely and potential 'bold' measures to intervene to counter the Yen's appreciation would be considered, the Yen has shown no signs of cooling

UK and Germany will release industrial production reports for the month of July amid concerns that global recovery is stalling. The recent data from the United Kingdom has been raising concerns that the pace of growth is slowing.

Market fears trumped the latest round of banter out of the Bank of Japan to help send the yen to fresh 15 year highs against the US Dollar. Traders were in risk adverse mode today as banking fears out of Europe raised their ugly head yesterday sending equities lower across

Ahead of the Bank of England interest rate decision on Thursday, the focus in the UK is on the manufacturing output numbers for the month of July. After a deep recession over the course of 2008 and 2009, 2010 has seen a strong rebound in activity with annual growth rates

The Japanese economy released its report which showed that the Japan's current account for the month of July, showing as surplus unexpectedly widened more than analysts' expectations, after the nation's export (which the main pillar of the growth) increased outpaced imports, as the global demand increased which encouraged the companies'

Risk-aversion continued to dictate market direction, with the Japanese yen touching a fresh 15-year high against the dollar while most of the major currencies tumbled against the greenback. The Canadian dollar slid by 1.2% and the euro dropped by more than 1.5%. The US equity bourses slid after returning from

U.S. Dollar Trading (USD) mild risk aversion and heavy EUR/USD selling helped the Dollar gain against most pairs. In US stocks, DJIA -107points closing at 10340, S&P -12 points closing at 1091 and NASDAQ -24 points closing at 2208. Looking ahead, July Consumer Credit is forecast to fall -3.8bn vs.

Stress from Europe. US equity investors returned from their holiday in a defensive mood as concerns resurfaced over the robustness of the European banking sectors. An earlier Wall Street Journal report which said the recent European bank stress tests may have understated government bond holdings got traction, and Germany's banking

The dollar, while falling against the yen and Swiss franc, rose versus other major counterparts on Tuesday on renewed concern about the European financial system. European bank stress tests understated banks' holdings of sovereign debts, Wall Street Journal reported. Yields in Germany and the US fell while those in Portugal

Today's US auction of 3-year notes saw strong demand with a slightly lower yield than expected. Indirect bidders (includes foreign central banks) bid the most since June. In general, US yields are sharply lower from their highs late last week. The 30-year, for example, topped out last Friday above 3.85%

The NY session saw a reversal of the last week's risk rally. Safe haven demand was clearly evident as the usual safe havens (JPY, CHF, USD, and Gold) strengthened significantly. The yen reached 15-year highs against the US dollar, the Swiss franc rose to record highs against the euro, and

The euro lost ground against both the dollar and the yen Tuesday as market concerns about the financial health of European banks came back to the fore. The euro was at USD1.2807 and JPY107.67 as of 0450 GMT, from USD1.2879 and JPY108.51 in late London trading on Monday (New York

Risk aversion took a step forward following analysis by Wall Street Journal staffers, claiming flaws in the methodology of the July stress-testing process across 91 European banks. The contention is that banks have understated the value of government paper they are holding, which underestimates maximum potential losses in the event

Now starting this week we wouldn't be surprised to see some sort of consolidation (pullback, or sideways move) as major data reports are sparse. There have been and will be, however, central bank meetings and decisions. The Bank of Japan and the Reserve Bank of Australia are already out

A bit of nostalgia on the PIGS sovereign debt issue as Portuguese debt spreads vs. Germany widen to a new record. Has the market dropped the ball on this issue? Also, USDJPY trading at new 15-year low as summer is officially over.

A news report released overnight showed that European stress tests understated some holdings of sovereign debt. While the report weighed on the euro, it did not come as groundbreaking news to many. Investors questioned the credibility and rigors of the Committee of European Banking Supervisors (CEBS) stress tests back in