NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - USD/JPY gains as investors sell yen in risk-on trading session

Published 08/26/2012, 10:13 PM
Updated 08/26/2012, 10:15 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar trader higher against the yen on Monday as investors sold the safe-haven yen and snapped up equities in a risk-on trading session on hopes central banks in the U.S., Europe and Asia will announce stimulus measures to spur global recovery.

In Asian trading on Monday, USD/JPY was trading at 78.78, up 0.16%, up from a session low of 78.73 and off a high of 78.84.

The pair was likely to find support at 78.73, the earlier low, and resistance at 79.05, the high from Aug. 15.

The Federal Reserve will host its annual symposium at Jackson Hole, Wyoming next week, where Fed Chairman Ben Bernanke has announced monetary stimulus plans in the past.

European Central President Mario Draghi will speak at the event as well, and expectations for monetary stimulus in the U.S., Europe and elsewhere pushed Asian stocks higher, which sent the yen falling.

Since the downturn four years ago, the Federal Reserve has rolled out two rounds of quantitative easing, in which the Fed buys Treasury holdings or mortgage-backed securities from banks, pumping the economy full of liquidity and lowering interest rates, weakening the dollar in the process and sending stocks worldwide rising.

Chairman Bernanke told a lawmaker in a letter last week that the Fed had the "scope for further action," while Fed officials have repeatedly said they cannot rule out more easing measures.

The dollar normally falls on talk of stimulus measures, though the Bank of Japan has intervened in its economy as well and may continue to do so, which sent the yen falling.

The European Central Bank is reportedly mulling purchasing sovereign bonds to lower borrowing costs in countries such as Spain, while China has said it cannot rule out cutting benchmark interest rates or bank reserve requirements.

The yen was down against the pound and down against the euro, with GBP/JPY up 0.13% and trading at 124.53 and EUR/JPY up 0.09% and trading at 98.50.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.