Rhetoric Increases In Japan

Daily Forex Fundamentals | Written by AC-Markets | Dec 11 08 08:38 GMT |

Market Brief The Usd fell sharply in the Asian session. The EurUsd was range bound for most of the session, but jumped from 1.3050 to 1.3150 as the session came to close. The UsdJpy continued to slide from yesterday's 93.03 highs to 92.27. Market sentiment was unchanged amid signs that the automaker bailout is now in the hand of the Senate. The media has been suggesting that the current proposal could fail in the Senate, as there are both Republicans & Democrats that object to the bailout plan in its current form. Asian regional indexes are slightly lower and European stock futures are pointing to a mixed open. Commodities have gained, as risky assets have rebounded recently with crude trading at $44.41bll and gold at $815.38oz. The Japanese authorities could be ready to intervene in the foreign exchange market to halt Jpy appreciation for the first time in more than four years. Economic conditions have eroded sharply since late October (G7 meeting), when Finance Ministers and central bank Governors expressed anxiety 'about the recent excessive volatility in the exchange rate of the Yen' and gave Japan a green light to intervene at their discretion. Recently, Governor Shirakawa said that the weakness in Japanese domestic economy is escalating and that the effect of FX pricing was being carefully watched. In Europe, the market will be watching the Swiss National Bank's interest rate decision. After cutting 100bp in a surprise move last month, we expect the SNB to hold and evaluate the situation. However, SNB's Roth has made it clear that the bank would reach deep into their bag of tricks to stop the financial turmoil from hurting the Swiss economy. ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.