Tuesday, 26 Jan 2010

Yen Hits 9 Months High against EUR

The yen hit a nine-month high against the EUR on Tuesday, rallying after a Japanese Finance Ministry official pledged fiscal discipline after ratings agency S&P downgraded its outlook on the country's sovereign rating. It was last trading at $1.2620, up 1% on the day and the USD was down 0.9% at 89.50.

Sentiment in the Japanese economy has brightened in the past week following better-than-expected news. The JPY is showing signs of resilience even though there was volatility throughout non-Japanese crosses. It will be crucial for traders to identify how the previous economic indicators from the U.S., European and Japanese economies will affect their positions.

As for the rest of the day, the U.S. Dollar awaits the publication of the American Consumer Confidence report at 15:00 GMT. The result is expected to be 53.6, slightly higher than the previous result of 52.9. This economic news release is expected to be the key driver of forex trading, and trading of the USD's main crosses as the U.S market opens.