Yen Slump Continues against the Dollar!

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Yen Slump Continues against the Dollar - Forex Currencies

USD

The mixed market signals led to the USD being flat against most of its competitors. It did gain slightly against the Yen. There is a positive trend that is expected in the market due to the rising European equities and US indexes. Stocks were boosted by Chinese exports and rise in US retail sales, but the traders are still circumspect about Spain’s situation. Spain’s uncertainty over financial aid and the impending decision of Greece on the new bailout conditions are holding back the Euro. The USD did gain 0.1% against the Euro but the rise wasn’t significant as the traders still await the decision from Madrid. The Dollar rose to 78.85 which was a ten day high against the Yen. Demand worries for crude oil stooped it below by 1% to $90.89.

Euro

The uncertainty over Spain requesting a bailout to get financial aid and whether or not Greece would adhere to the new conditions to tackle its indebted lenders has led to decrease in purchases of the Euro. The traders though aren’t completely bearish on it yet as Spain’s decision might provide a positive boost. Greece has been provided more time to meet its bailout targets to avoid its exit from the single currency. The Euro was down 0.1% after it recovered from a dip at $1.2889 currently standing at $1.2941. The decision of the European Central Bank to buy bonds of the countries who requested a bailout would act as a positive impetus to the traders. All such decisions await the European summit later this week.

Yen

The Yen is currently the weakest link in the currency market and the USD/JPY pair might break the resistance level of 79.22 soon. The reason being an increased appetite of traders to take risks. This also led to an increase in European indices. There are no signs of trend reversals as of yet. Another reason for a dip in the Yen’s performance is the wrath of the release of Chinese data which showed the increased exports in comparison to its steady imports. The inflation that China is experiencing is detrimental to the Yen. The Yen also fell 0.2% against the Euro to 101.85 and is currently at 102.29.