JPY Daily News

JPY is Boosted by British Banking Woes

The Yen rose against the EUR and GBP as the Euro-Zone economy weakens, and the British banking crisis deepens. Britain's second largest bank, the Royal Bank of Scotland's posted a 28 billion Pounds loss, the biggest ever of any British company. This in turn sparked fears that the British government will have to take over the company. The EUR fell to its lowest level in over a month against the Dollar yesterday ahead of data released today, which will show an 18 month consecutive decline in German consumer confidence. This was also echoed by a worse than anticipated decline in the Euro-Zone's economy this year.

Japanese economists fear that the credit losses in Japan will spread, as the recession in the country is set to deepen. However, despite this the JPY is likely to increase its strength against its major currency pairs. This may come about as the global economic situation becomes more unstable. For example, by the end of the year the European Central Bank (ECB) is likely to cut its Interest Rates by another 100 basis points to 1%. This would as a result make Japan's currency more attractive as people flock to the JPY, as carry trades unwind.

Current Time: 05/27 03:02 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
01/20
	05:00	JPY	Household Confidence		28.4	27.2	26.2