Analysis and Recommendation: The USD/JPY dipped 42 points to trade at 123.00 as the greenback continued to decline while traders continue to monitor the
The USD/JPY dipped 42 points to trade at 123.00 as the greenback continued to decline while traders continue to monitor the US Federal Reserve. The Japanese yen strengthened, by 0.1 per cent to Y123.29 per dollar, boosted by the positive PMI reading and the currency’s haven status.
The rush for havens pushed yields on longer-term US government to their lowest level since April overnight and gold to a five-week high. In a sign of the growing unease, the Chicago Board Options Exchange’s Volatility Index shot up by 25.5 per cent to 19.14, its highest since mid-July and its biggest move since a rise of 34.5 per cent on June 29.
Stocks tumbled on Friday after a survey showed Chinese factories contracted at their fastest pace since the depth of the global financial crisis in 2009, sending investors scurrying to the safety of bonds and gold.
The safe-haven U.S. Treasury yields also pulled further down. Yields were already feeling a downward pull after minutes from the Federal Reserve’s July meeting offered little clue of a near-term rate hike, denting expectations of a tightening in September.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
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CNY |
Caixin Manufacturing PMI (Aug) |
47.1 |
47.7 |
47.8 |
Upcoming Economic Events that you should be monitoring:
Monday, August 24, 2015
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EUR |
German Manufacturing PMI (Aug) |
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EUR |
German Services PMI (Aug) |
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EUR |
Manufacturing PMI (Aug) |
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EUR |
Markit Composite PMI (Aug) |
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EUR |
Services PMI (Aug) |