Stock Market Watch

Forex Market Update: Yen Trades Broadly Lower, Euro Falls against Dollar

by ·


The yen traded broadly lower on Wednesday and is expected to feel more pressure as the volatility in the bullion prices eased after buyers in Asia started to stack up gold coins and bars, taking advantage of record low plunge on Monday when cash gold prices hit two-year low level.

Sharp gains in spot gold prices also boosted the sentiment in riskier assets as well on Wednesday.

Traditionally, apart from the U.S. dollar, investors also seek safety in the yen when they are uncertain about the macroeconomic outlook and clueless on where to put the money. On Monday, gold prices tumbled more than 9% while global equities also got battered when data releases from the world’s two top economies pointed towards slowdown, prompting investors to seek safety in liquid currencies such as the yen.

However, the bullion market stabilized on Wednesday as buying orders in Asia improved significantly. At last check, cash gold prices were gaining 1%.

At around 8:45 EST, the yen fell 0.46% to trade at 98 to the dollar.

Meanwhile the euro also fell against the U S dollar during European trading hours on Wednesday amid media report which quoted an ex-board member of the European Central Bank as saying that euro was gaining too fast.

Lorenzo Bini Smaghi said that the ECB should come up with ways to stop the euro from gaining, according to Reuters.

At last check, the euro fell 0.37% to trade at $1.3127.

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...