Halt The Yen's Appreciation

The Asian region is about to start a calm week, as the eyes will be focused on Japan except for Japan that dominates the week's data. The data starts with February's industrial production along with the CPI and the unemployment figures. Japan’s February preliminary industrial production index is due for release where the prior reading indicated an increase by 1.9%; also February's unemployment data will be released, which is expected to hold at 4.6%. The Japanese economy is currently struggling to recover and to beat its chronic problems, and on top of these problems comes the yen's ongoing appreciation. The currency recently retreated to its lowest level in 11 months to give some room for Japanese companies; however it's not enough especially after the recent contraction in the fourth- ...

Bernanke Rejects A Strong Dollar The dollar will look to gain momentum from Friday's payroll data and the path of least resistance is a slightly firmer US currency but substantial gains are likely to be effectively blocked by the Federal Reserve. There are three central bank meetings during the coming week and all three currency areas will continue their policies of trying to avoid being the international safe-haven currency of choice. The Euro-zone has, for now, fended off a Greek default, but structural vulnerabilities will continue to sap the currency. The Swiss franc was the clear choice in the first half of 2011 as it appreciated violently against the dollar and the Euro. The Swiss National Bank cut interest rates effectively to zero and introduced the minimum Euro level of 1.20 ...

The euro rose against the U.S. dollar on Friday trading, yet probably heading for a weekly decline, on expectations U.S. jobs report will show rise in non-farm payrolls, thereby enhancing risk taking. The main highlight of the day will be the awaited non-farm payrolls report from the U.S. due at 13:30 GMT. The change in non-farm payrolls is predicted to retreat to 140,000 in January from 200,000 in December, while unemployment will linger at 8.5%. However, the euro will probably record a weekly drop as Athens is struggling to reach a debt-swap deal, raising concerns the debt-mired nations may face default as early as in March when 14.5 billion euros of debt matures. Josef Ackermann, chairman of a banking group in negotiations with Greece, said on Thursday a deal with private sector ...

The euro slipped against the U.S. dollar on concerns the negotiations between the Greek government and private-sector bondholders didn't make any progress. Currently, Greek Prime Minister Lucas Papademos is looking for support from political leaders to launch further austerity and reforms needed to convince international lenders to give Greece a second bailout worth 130-billon-euro announced in October amid concerns Greece may fail to repay as much as 14.5 billion euros of debt maturing on March 20. A report by Bloomberg on Wednesday said Greece and its creditors may reach an agreement with a loss of 70% for a lower borrowing cost of 3.6% instead of 4.25% on 30-year bills, where, in return, a rebound in Greek growth would make the pay to bondholders higher as a compensation for ...

The U.S. dollar collapsed to 3-mtonh low versus the Japanese yen as the improvement in the sentiment after upbeat manufacturing data sapped demand on the greenback as a refuge. The green currency fell against a basket of major currencies, as depicted by the dollar index, which tracks the dollar movements versus a basket of major currencies, after manufacturing data in China, euro area and U.K. beat forecasts, providing hopes global economies will rebound in the first quarter. Later in the day, the U.S. will release important data, including ADP employment and ISM manufacturing. Also, eyes will track the selling of 5- and 10-year notes by the German government. As for the USD/JPY, it fell for the fifth consecutive session to trade around 76.08 after reaching a high of 76.30 and a ...

Last week witnessed a number of important economic data from the Asian region, while the financial markets continue to show more volatility between optimism and pessimism about the future of the global economy. The highlight was merely the surprise move from the PboC to cut the reserve requirements a first sign that China is feeling the downside pressure and acted preemptively to prevent further slowing. Starting from Japan, the jobless rate rose for the first time in three months in October, indicating that Japan is still suffering from the consequences of March 11 earthquake along with the Japanese companies' unrest and losses as a result for the yen's ongoing appreciation, which forced companies to downsize and lay off some of their employees because of poor sales. The Jobless rate ...

Japan’s jobless rate rose for the first time in three months in October, indicating that Japan is still suffering from the consequences of March 11 earthquake along with the Japanese companies' unrest and losses as a result for the yen's ongoing appreciation, which forced the harmed companies to impose a downsizing plans and lay off some of their employees because of the poor sales. Today, the Japanese economy has released the data for the Jobless rate where it recorded a rise of 4.5%, compared to the prior reading of 4.1; also it came above expectations of 4.2%. Also, the data for annual retail trade was released as well, where it rose to 1.9%, compared with the prior reading of -2.1%, above expectations of 0.6%. The seasonally adjusted retail trade for October, where it rose to 1.4%, ...

Fundamental News: Today’s highlights: • BoJ Governor Shirakawa Speaks (JPY, 05:00 GMT) Singapore-based director of sovereign ratings at S&P, Takahira Ogawa, said in an interview yesterday that Japan’s finances are deteriorating. S&P rates Japan at AA- and has had a negative outlook on the rating since April. Japan’s benchmark 10-Year Yield bond yields increase above 1 percent, poised for the biggest weekly climb since January, as fear grows on the fact that the government will be unable to restraint in the world’s largest debt and the twenty-year bonds registered the highest decrease since May today after Standard & Poor’s said yesterday it may be closer to lowering Japan’s sovereign grade. Japan's economy is facing a high wave of slowdown driven by the global-economy weakening on one ...

Asian financial markets witnessed a significant deterioration as a result of concerns that dominated markets after the negative developments in the European debt crisis and the continuing slowdown in the U.S. economy, in addition to poor performance by Asian economies. The Reserve Bank of Australia minutes said that leaving rates unchanged at 4.75% is apt as monthly employment growth averaged 2,800 from January through August amid the sluggish global economy. Also, the Bank sees global financial market conditions unsettled this period, noting that the decision is prudent at this time amid the fears that dominate the market, while the investment sector is picking up which is a positive phase to push the economy to return once again to the normal levels. On the other hand, Australian ...