1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Yen Benefits as Investors Shift Assets from Troubled Euro Zone

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Jan 28, 2010.

  1. forextrends24

    forextrends24 New Member

    Joined:
    Mar 27, 2009
    Messages:
    252
    Likes Received:
    0
    Today’s sample of Forex Analysis from ForexHound.com

    The Japanese Yen rose on Thursday as investors shifted assets out of the troubled Euro Zone on renewed budget turmoil in Greece. A spike in the cost to insure Greece’s sovereign debt triggered a flight to safety rally which fueled a turnaround in the Yen after earlier weakness. News that a similar situation is developing in Portugal also contributed to the Yen’s strength. The Euro fell to it lowest level against the Dollar as the news broke.

    Traders had been cautiously removing risk from the Euro the past couple of days after a report earlier in the week showed great interest in a possible bailout bond issuance from Greece. Today’s action indicates that the situation is growing worse and that the Yen may soar at the expense of the Euro over the short-run.

    After trading relatively flat in the hours before the New York opening, the U.S. Dollar strengthened close to midday as investor sentiment shifted back toward safety. Late yesterday and overnight, the Dollar appeared to be ready to weaken as demand for higher risk assets began to pick up following upbeat news from the Fed and a well-received speech from President Obama.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
Loading...

Share This Page