Dollar Yen rebounds modestly from 78.14 - Forex Trading Update from FX Solutions

View PDF | Print View
by: fxsolutions
Total views: 38
Word Count: 253
Date: Sat, 6 Aug 2011 Time: 7:36 PM
0 comments

Chris Advincula, Market Analyst at award-winning broker FX Solutions (http://www.fxsolutions.com/), provides forex traders with an overview of currency market activity and news on 25th July 2011, including news of a rebound for the Yen.

"Dollar Yen was 15 pips lower at today's open at 78.32 compared to Friday's close of 78.47. It rebounded to meet resistance at 78.53 in the Asian market.

Dollar was broadly weaker at the open as the lawmakers in Washington were still divided and failed to reach a budget agreement at yesterday's Sunday meeting. The Republicans strongly oppose tax increases, while theDemocrats dislike proposed cuts to popular social programs (ie: Medicare & Medicaid).

The Bank of Japan Governor Shirakawa commented: "There is uncertainty to prompt buying of Yen and Swiss" and "The High Yen may hurt if from weak overseas economy." There are still underlying fears of a possible BOJ G7 intervention if the rates should go lower to 78.00 where investors at the same time are reluctant to short this particular pair.

The unresolved debt budget plans in Washington continues to weigh on both the dollar and the global stock and equities market. Many fear if the lawmakers do not reach an agreement by August 2nd, the U.S. will default on its maturing debt obligations and may also not be able to raise the $14.3 trillion debt ceiling as well.

The 30-day exponential moving average consolidates between 78.45 and 78.34."

For more information on FX Solutions, visit:
http://www.fxsolutions.com/

About the Author

Forex trading involves substantial risk of loss and is not suitable for all investors.

About FX Solutions

FX Solutions is a leading FX broker with a focus on advanced forex trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.

FX Solutions' products are regulated in the United States, United Kingdom and Australia. FX Solutions in the United States is regulated as a member of National Futures Association, and registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. In the United Kingdom, FX Solutions is a registered trading name of City Index Limited which is authorized and regulated by the Financial Services Authority. FX Solutions in Australia is a registered trading name of City Index Australia Pty Ltd. which is authorized and regulated by the Australian Securities and Investments Commission.

For more information, please visit www.fxsolutions.com www.fxsol.co.uk and www.fxsolutions.com.au