Stock Market Watch

Forex Market Update: Yen Inches Up Against Dollar, Euro Falls

by ·


The yen climbed to its one month high against the U.S. dollar during Asian trading hours on Tuesday as unexpectedly weak manufacturing data released previous day, weighed on the U.S. unit.

The U.S. dollar slipped below the chart support of around 93.12 yen, which is also its 50-day moving average to hit 92.57 yen, its lowest level since March 1. At around 8:15 AM EST, the yen pared most of its gains but still traded up 0.03% at 93.27.

However, currency strategists believe that gains are likely to be capped as the Bank of Japan (BOJ) is soon expected to announce further monetary easing measures. The central bank is scheduled to hold its meeting on April 3-4.

“We need to see aggressive, bold and clear language from the BOJ for the dollar to re-break 94.30 yen and suggest that this technical damage has been reversed,” said Hans Redeker, head of global foreign exchange strategy at Morgan Stanley, according to Reuters.

It is widely anticipated that Bank of Japan’s new governor, Haruhiko Kuroda, who is known to keep a very dovish stance on monetary policy, will announce the start of an open ended bond purchase program and extend maturities of the bond in an effort to provide economic stimulus.

Meanwhile, the euro edged lower against the U.S. dollar after a pair of economic indicators showed that the monetary union was not yet out of the woods.

While unemployment level in the currency bloc remained at record high level in February, Markit’s PMI data for March showed that manufacturing activities declined from the previous month.

At last check, euro edged down 0.14% to trade at $1.2829.

More Posts by this author

edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...