Nov. 14 (Bloomberg) — The yen rose, heading for weekly gains against the euro and the dollar, as a drop in U.S. retail sales prompted speculation investors will sell higher-yielding assets and pay back low-cost loans in Japan’s currency.
The dollar was poised for a second weekly gain versus an index of the currencies of six major trading partners as investors sought the relative safety of U.S. assets. The yen climbed against the Australian and New Zealand dollars today on bets a Group of 20 nations summit will fail to reach a consensus on resolving the credit crisis, sapping carry trades.
Yen’s Weekly Gains
The yen rose 1.5 percent versus the dollar this week, its biggest gain since Oct. 24, and advanced 2.1 percent against the euro, 3.9 percent versus the Aussie and 7.1 percent versus the New Zealand dollar.
European GDP
GDP in the 15 euro nations shrank 0.2 percent from the previous three months, when it also contracted 0.2 percent, the European Union’s Luxembourg-based statistics office said today. The two quarters of contraction mark the first recession since the single currency was introduced almost a decade ago.
Interest Rate
The BOE is prepared to cut interest rate from 3 percent, Governor Mervyn King said this week.
Leaders of G-20 countries were gathering in Washington to debate proposals ranging from curbing executive pay and restraining hedge funds to raising capital requirements for banks after financial institutions worldwide lost $958 billion on securities tied to U.S. mortgages.
[...] Original post by TopForex.info [...]
[...] Original post by TopForex.info [...]
[...] Original post by TopForex.info [...]
[...] TopForex.info wrote an interesting post today onHere’s a quick excerpt Nov. 14 (Bloomberg) — The yen rose, heading for weekly gains against the euro and the dollar, as a drop in U.S. retail sales prompted speculation investors will sell higher-yielding assets and pay back low-cost loans in Japan’s currency. The dollar was poised for a second weekly gain versus an index of the currencies of six major trading partners as investors sought the relative safety of U.S. assets. The yen climbed against the Australian and New Zealand dollars today on bets a Group of 2 [...]
[...] Original post by TopForex.info [...]
[...] Original post by TopForex.info [...]
Nice one.
nice post. i never knew that about the yen..
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