OctaFX | OctaFX Forex Broker
Open trading account
Back

Japan rests re-assured not labeled 'currency manipulator' by G7

FXstreet.com (Barcelona) - Over the weekend, the G7 re-assured the market that Japan is not deliberately weakening the yen in order to create a competitive advantage against other industrialized nations.

The group repeated its old same lines about its commitment t avoid artificial currency devaluation for domestic gain purposes, while re-iterating its commitment to avoid volatility in FX rates.

According to Mike Paterson, editor at Forexlive: "The general consensus seems to be they accept Japan’s arguments that their dramatic easing on monetary policy is aimed at combating deflation rather than weaker currency advantage."

Mr. Paterson thinks the last developments in the G7 meeting "should be the green light for further yen selling when markets re-open given that it takes the uncertainty out of the equation but the announcement was hardly a surprise" he said.

It will be interesting to see just how much weaker it gets in the early stages. Failure to drop too far will suggest that there rightly should be an air of caution after such rapid falls.

But as the say goes, all that glitters is not gold, and US, Canada and Germany were all suspiciously more notorious on voicing out a closer monitoring over Japan's next policy actions.

As Mr. Paterson rightly points out, "behind the scenes of G7, sure there is not such a united front as they wish to portray."

U.S. Treasury Secretary Jack Lew had something to say on yen weakness: “We’ll keep an eye on that”, suggesting that any signs of currency manipulation by Japan will be watch very closely, adding that Japan had “growth issues.”

Japan's Finance Minister Mr. Aso confirmed to media reporters that no criticism was noted on Japan’s monetary easing.

Forex: EUR/USD completes 200 pips decline in two days but remains above 1.2950

There is a mixed outlook for the EUR/USD according to the FXstreet.com Currencies Forecast as the banks are bearish while the traders are bullish following the tough week the market is closing. On Thursday, unexpected dollar strength rocked the markets with the USD/JPY breaking ferociously the 100.00 mark and shaking the majors.
Read more Previous

Forex: AUD/USD opens around parity, new exciting trading era

The AUD/USD is trading around the parity level in the early going of Asia, following two days of strong liquidation on the rate which led to break the 11-month range through 1.0150/10 to print its lowest since June 14 last Friday before profit taking kicked in ahead of last Friday's NY close.
Read more Next
Start livechat