Wednesday, 15 Sep 2010

Yen Drops On All Fronts

The dollar rose more than 3% against the yen on Wednesday as Japan intervened to weaken its currency for the first time in six years, kicking off what could be a sustained effort to limit yen strength.

Among winners on Wednesday were Japanese exporters who were able to exchange dollar earnings above 85 yen. Some analysts said China was likely to welcome Japan's moves as it would dampen U.S. pressure on Beijing to allow its own currency to rise against the dollar.

Tomorrow, forex traders cannot afford to overlook a batch of data that is expected from the leading economies. Both the Unemployment Claims and PPI will be released at 12:30 GMT, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.