The yen fell for the second day against the dollar early on Tuesday and other major currencies, as comments from the BOJ Governor reduced demand for the Japanese currency. On the other hand, the risk aversion eased and the jitters declined after the EU approved the Portugal bailout and continued to discuss more measures to support Greece.
The Bank of Japan Governor Masaaki Shirakawa warned on Tuesday during a parliamentary committee meeting that the Japanese economy is experiencing a very sever state after the devastating earthquake that hit Japan on March 11.
Shirakawa added that the Bank of Japan will do its best to combat deflation, but he added that any rise in prices must be based on strong economic growth. Now it is very clear that the Japanese monetary policy will move according to the two major issues: supporting economic growth and fight deflation.
Furthermore, traders are wary of the quick appreciation for the yen against the dollar and other major currencies, on fears that BOJ could intervene once again in the FOREX market and sell its currency, and as a result the yen started to reverse its movements against most of its counterparts.
On Wednesday at 23:50 GMT (Tuesday), Japan will release tertiary industry index for March, where it's expected to decline 5.8% from the previous increase of 0.8%.
The MBA mortgage applications are due from the U.S. at 11:00 GMT, with a previous reading of 8.2%. At 18:00 GMT the Federal Reserve Bank will release the FOMC Minutes. Eyes will be focused on the Feds statement which might be less influential after Bernanke provided the latest updates in the conference following the decision.
Originally posted here
Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
