The Yen Falls As The Global Economic Crises Eases And Investors Take More Risk

Daily Forex Fundamentals | Written by Finotec Group | Jul 30 09 09:27 GMT |

The Japanese yen fell against the euro after a government report showed Japanese manufacturers boosted production for a fourth month, sapping demand for safe-haven currencies. The Yen also fell versus 11 of its 16 major counterparts as an advance in Asian stocks spurred speculation investors will purchase higher-yielding assets. The euro traded near a one month high versus the Swiss franc before a European report that may show executive and consumer confidence rose, adding to signs the recession in the 16- nation region may be abating. 'Obama's comments and Chinese policy makers saying things are OK are clearly driving the yen lower,' said Satoshi Okagawa, head of the foreign-exchange forward trading group at Sumitomo Mitsui Banking Corp. in Tokyo. 'Stocks are a tad higher, so the yen is also being sold a bit.' The USD/JPY is currently trading at 94.95 as of 8:54am, London Time. President Barack Obama sought to reconcile improving economic data and his own struggling poll ratings by telling Americans that many are still struggling even as an end to the recession may be near. The president opened two events yesterday outside Washington designed to focus on health care with a defense of his economic policies, saying they stopped a 'freefall.' Obama said he arrived in office facing 'the worst economy of our lifetimes' and that the bank rescues begun under former President George Bush were necessary to avoid a collapse of the financial system. Propping up General Motors Corp. and Chrysler LLC was necessary to save thousands of jobs, he said. The British pound snapped a two day decline against the greenback and gilts fell after a report showed U.K. house prices rose. The British currency also advanced versus the euro after U.K. mortgage lender Nationwide said the average cost of a home climbed 1.3 percent in June. 'House-price data continues to surprise to the upside, creating strong implications for consumer and investor confidence,'Neil Jones, head of European hedge-fund sales at Mizuho Corporate Bank Ltd. in London, wrote in an e-mail. 'The pound should outperform today and longer term against other major currencies.' The GBP/USD is currently trading at $1.6500 as of 9:13am, London Time. Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.