Crude Oil Tumbles as Norway's Oil Workers Strike Ends!

By ForexMinute
Font Size
Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Yen gains versus most currencies

The yen gained versus the US dollar, euro, Australian dollar and New Zealand dollar in Tuesday’s Asian trading session. The USD/JPY trading rate at 1:29 PM in Tokyo was 79.49 and the EUR/JPY rate was 97.63. The resource linked currency i.e. the Australian dollar was trading at 80.77 yen, its weakest level in 11 days. The New Zealand dollar declined by 0.3% and was trading at 63.16 yen.

Japan’s Nikkei also fell for a fourth day in a row, on the cue that China’s imports have grown at half of the pace expected by economists. This has caused worry in Japan, as China is Japan’s largest overseas market. The continually high rate of the yen may further dissuade countries to import goods from Japan.

It is expected that the Bank of Japan will announce some economic stimulus packages in its meeting scheduled for July 11-July 12. However, some experts feel that even this move may not bring down the rate of the yen.

US dollar gains versus euro in Tuesday’s Asian trading session

The US dollar gained in value against the euro, but fell against the Japanese yen on Tuesday. Despite the fall against the yen, technical analysts feel that the greenback could rise over 80 yen in the near term.

At 1:29 PM Tokyo time, the USD/JPY rate was at 79.49. The euro was trading at $1.2292 at 7.46 AM London time. The Australian dollar declined 0.3% against the US dollar, with the AUD/USD rate at 1.0180. Even the New Zealand dollar fell against the US dollar, as 79.44 US cents fetched 1 New Zealand dollar.

As a trend, the US dollar’s rates against other currencies seem to be affected by data coming out of competitors’ economies rather than the US economy itself.

Euro declines against US dollar and yen

The euro declined against the US dollar and yen on Tuesday, after data showed that France’s industrial output dropped in May 2012. Industrial output fell by 1.9%, worse than the projections of 1% made by experts. Bond sales of Italy and Spain did however extend gains, which is a good sign.

At 7:46 AM in London, the EUR/USD trading rate was $1.2292. The EUR/JPY rate was 97.63, down by 0.3%. Foreign exchange experts feel that in the long term the dollar will gain in value, and the euro will decline. It also seems that the European Central Bank could even reduce interest rates further in order to spur on the Eurozone economy.

Crude oil
Crude oil prices fall as Norway’s oil workers call off strike

Oil prices fell on Tuesday, after rising earlier on Monday. The fall was primarily due to Norway’s oil workers calling off their strike, which had threatened to affect oil production in the country.China reported that it has reduced its oil imports to 5.28 million barrels a day, and this caused negative sentiment in the oil market as well.

At 3.08 PM Singapore time, oil was trading at $84.62 a barrel at the New York Mercantile Exchange. In New York, oil prices have declined by 14% this year. In London, Brent crude was at $98.56 a barrel, down by 1.8%.

The negative sentiment in the global economy is also keeping oil prices at lower levels.

Want to read more articles like this one?

Get the latest fundamental analysis, technical analyses and the most up-to-date news catered to your interests, everyday.

* Please enter a valid email

Activation link was sent

An activation link has been sent to your E-mail.
You will start getting emails only after activating your account.

Find a Broker
Continue to FX Empire Network