Tuesday September 7, 2004 - 09:40:12 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Growth hopes support yen
There is greater optimism over the economy and confidence that Japanese GDP figures will be revised up sharply on Friday. There will also be optimism over Nikkei gains and this should attract capital inflows. Heavy dollar selling is unlikely for now with support on dips to the 109.0 level. The dollar will, however, face further heavy selling pressure on moves towards 110.5, especially with exporter selling, with the yen offering good value above 110.0.
The dollar failed to hold the 110.0 level against the yen and weakened to a low of 109.65 in early Europe on Tuesday as yen confidence remained stronger.
The Japanese investment figures yesterday have revived confidence in the economy with expectations that second-quarter GDP figures will be revised substantially higher on Friday. Indeed, there is the potential for the annual GDP estimates to be doubled to around 3.5%
The economic optimism has helped support the Nikkei index with a rally to a five-week high after a 0.49% daily gain and this will tend to attract further capital inflows. Lower oil prices will also help underpin the yen, although a substantial move is unlikely as lower prices should also help support the US dollar. Lower oil prices should offer some yen support against the Euro.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."