The Japanese yen continues to dominate economic news. After several days on which the yen appreciated on all fronts, the Group of seven industrial nations has decided to aid Japan by actively intervening in yen’s trading.
After the G7 announcement, the Japanese currency saw a sharp decline against all the major currencies. The yen almost instantly fell about 150 pips vs. the U.S. dollar, and about 350 pips against the euro and the British pound.
Traders are now advised to keep following any updates regarding Japan’s nuclear crisis, as any development, for the better or for the worse, will have a prompt reaction in the market. Traders should also follow any indication regarding an intervention from the G7 in the market.
Another development that took place during the night was the United Nation vote regarding Libya. The Security Council has passed a resolution endorsing a no-fly zone to halt government troops. As a result, crude oil prices surged and reached as high as $103.50 a barrel. If a clash will take place, prices have potential to surge further.
Here are today’s leading news events:
• 07:00 GMT, German Producer Price Index (PPI)- This report is considered to be a leading indicator of consumer inflation, and tends to have a large impact on the market. If the end result will beat forecasts for a 0.7% growth, the euro is likely to strengthen.
• 11:00 GMT, Canadian Consumer Price Index (CPI) – This report is considered to be the most accurate gauge, and thus has a significant impact on the market. If the end result will beat projection for a 0.4% rise, the CAD may strengthen against its major rivals.
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Anton Eljwizat is a Currency Analyst with ForexYard. His experience in writing technical analyses for trading companies such as ForexYard has helped Anton stand out among other analysts. His understanding of technical indicators and chart analysis helps him provide some of the most groundbreaking analysis in the market today. His writings have been published on the ForexYard Trading Blog and affiliate websites. Anton holds a degree in Business Management from Ryerson University as well as a degree in Finance from Centennial College in Canada.
