The US Dollar capped losses for the entire day on Wednesday against all its competing currencies. One of the reasons for this was that Japan announced a round of monetary easing. The Japanese Yen therefore saw a rise. There was also the positive news which came in from the European region helping boost their currency. Compared to the Japanese Yen the USD tumbled by 80 pips. It traded at just 79.26 thorough the entire day and finally stemmed at 79.55 later in the day. Against the Swiss franc, the dollar also saw a downward swing by 70 pips. Investors would surely move their capital out of the US market if there is going to be destruction in the aftermath of Hurricane Sandy.
Euro trading higher The Euro had a better day compared to its contemporary currencies for the trading that took place yesterday. The main reason for this upward swing of the Euro has been the Flash GDP rise in the Spanish region. There was also the high demand for Italian bonds at the auctions that was witnessed. In the EUR/USD pair it saw an advance of more than 90 pips that was seen over the day’s trading. It had ended up at 1.2982 by end of the trading session. The Euro was able to reverse the losses that it had faced against the Japanese Yen in the Asian trading session. It moved up 89 pips during the mid-day trading session. Euro Forex players would be better if they paid attention to the CPI Flash Estimate and Unemployment rate. These are very significant factors so far as the European region goes.
A weakening Japanese Yen The Bank of Japan eased its monetary policy and still the Yen climbed in the days trading. It gained against the US Dollar whilst it fell against the Euro. This could be attributed to the positive turn of market sentiment. The Bank of Japan declared the asset purchase program of ¥91 trillion from the previously declared ¥11 trillion. Measures to counter deflation were also announced by the Central Bank. Forex traders in the market contemplated this to be a stimulus negligible and the Yen jumped due this sentiment. As of now the currency is weakening. It was down to 79.60 from 79.78 for the USD/JPY at 14:26 GMT. The daily low registered was at 79.26. The EUR/JPY however went from 102.94 to 103.17. It had touched a low of 102.15 during the day.
The hurricane effect on Crude Oil prices The bullish movement that Crude oil was experiencing during the morning hours of trading was stemmed to an extent after news about Hurricane Sandy started to filter in. Oil had jumped $1 a barrel in the mid-day trading session, with gold moving higher too. Oil ended up at the $85.90 level.