G-20 Members Agree to Avoid Currency War, Yen Continues to Fall

On Monday the US markets were closed to to the President's Day holiday. Investors continued to discuss the recent meeting of G20 policy makers that occurred on Friday. At the meeting the ministers pledged to not devalue their currencies to gain trading advantages. Mario Draghi of the European Central Bank on Monday spoke to quell fears that Japan and other countries may deliberately weaken their currencies. Despite this truce, Japan has admitted that they have not ruled out the purchase of foreign bonds, which would devalue the yen and violate the recent G20 proposal. This week several important economic indicators will be released including January's construction activity and a manufacturing gauge.
Along with jobs data, the information will give a sense of the general economic outlook and confidence. Investors will also have their eyes on gold this week and wonder if countries such as China may bet on it, since the price dropped below $1,600 an ounce again on Friday.

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Published on Feb 18, 2013
By InvestorGuide Staff

Copyrighted 2020. Content published with author's permission.

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