Friday, 30 Jul 2010

Yen Remains on Top As Market Closes for the Weekend

As concerns regarding the pace of the global economic recovery continue to dominate the marketplace, the safe-haven yen has managed to increase its gains against the volatile currencies. Both the German Retail Sales report and the U.S. Advance GDP came in below expectations earlier today, and led to the continued selloff of both the U.S. dollar and euro against the yen. Meanwhile, the U.K. pound made substantial gains against both the euro and greenback to close out the week.

Next week, the U.S. dollar will have ample opportunities to recoup losses as a string of news events are set to create heavy market volatility. The U.S. ISM Manufacturing PMI, the Pending Home Sales report and the ISM Non-Manufacturing PMI are all forecasted to show positive signs of growth in the U.S. economy. These news events are all leading up to Friday's Non-Farm Employment Change report, which early predictions are indicating may show a big jump in the U.S. employment figure. Should these predictions come true, the greenback may finally be able to end its bearish trend.