Analysis and Recommendation: The USD/JPY is trading at 97.10 as the yen is the currency of choice in this time of safety. Traders are buying up cheap yen
The USD/JPY is trading at 97.10 as the yen is the currency of choice in this time of safety. Traders are buying up cheap yen as they move to risk off sentiment. The stress of a war with Syria, continued conflicts in Egypt and Libya are the Middle East a tender box. The west’s response to the use of chemical weapons is under discussion but the majority is pushing for some type of intervention. The yen maintained its gains against the dollar in Asia on Wednesday and emerging market currencies sagged as traders shunned risk and fled to safety on rising tensions over Syria. The dollar bought 97.03 yen in Tokyo midday trade, largely unchanged from 97.01 yen in New York Tuesday afternoon but sharply down from rates above 98.00 yen in Tokyo Tuesday.
The safe haven yen hit a two-week high against the dollar on Wednesday, after posting its biggest rally in more than two months the previous day as investors scrambled for safety amid heightened geopolitical tensions. The United States and its allies are gearing up for a probable military strike against Syria that could happen within days as punishment for last week’s chemical weapons attacks blamed on President Bashar al-Assad’s government. The dollar initially fell against the yen on vague rumors of a bombing in Syria, with stop-loss dollar selling at levels near 97.00 yen and below adding to the greenback’s drop.
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.
Economic Data August 28, 2013 actual v. forecast
Date |
|
Currency |
|
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Aug. 28 |
|
KRW |
|
|
South Korean manufacturing BSI Index |
78.00 |
|
|
|
74.00 |
|
|
|
|
AUD |
|
|
Construction Work Done (QoQ) |
-0.3% |
|
1.6% |
|
-1.9% |
||
|
|
THB |
|
|
Thai Industrial Production (YoY) |
-4.5% |
|
-2.3% |
|
-3.5% |
|
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Aug. 29 |
02:30 |
AUD |
1.0% |
-4.7% |
|
|
13:30 |
USD |
0.7% |
0.7% |
|
|
13:30 |
USD |
2.2% |
1.7% |
|
|
23:45 |
NZD |
-4.0% |
Government Bond Auction
Date Time Country
Aug 29 00:30 Japan
Aug 29 09:10 Italy
Aug 29 09:10 Sweden
Aug 29 17:00 US
Aug 30 14:30 UK