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I wanted to provide a quick update on trade that keeps giving as we begin a new week of trading. The U.S. dollar continued its move higher during the Asian session and remains basically flat during the start of the U.S. session the as pair approaches the 100.00 level.
As we head into the weekend and this final session of the week traders find U.S. dollar against the Japanese yen jumped 1.20%. The yen moved sharply lower on the news on Finance Minister Taro Aso new monetary easing where unopposed at G20 meeting held in Washington DC.
Late into European the U.S. dollar retreated off the a 2 ½ year high against the Japanese yen after Japan’s Economy Minister, Akira Amari remarks that a weaker yen could possibly have a negative impact on Japan’s economy by increasing import prices.
Currencies remain mixed as the U.S. fiscal cliff weighs on the U.S. dollar on the final trading day of 2012. The Biden-McConnell talks seem to have given markets last minute hope for avoiding the fiscal cliff with meetings after midnight and again early this morning.
The U.S. dollar climbed against the Japanese yen in the final session of the week, and third quarter. The dollar gained strength from the announcement of Spain’s proposed 2013 budget with its austerity measures of cutting spending without increasing taxes.
Playing the Federal Reserve statement scheduled for 2:15 p.m. EDT boils down to a binary setup. “To be or not to be”, or in trader speak, “To ease or not to ease.”
In this morning’s markets update, Asian markets across the board pushed lower going into the weekend, ignoring any possible positive news from the G8 summit this weekend in the U.S.
The Japanese yen is on the move as traders look for safe haven assets from deteriorating conditions in Greece, Spain and the euro zone generally.
Gold bugs watched gold prices fall even further this week, basically wiping out 2012’s gains on the COMDEX as money flowed from risk assets to the safety of the U.S. dollar and Japanese yen.
U.S. futures are pointing to a mixed open once again on what should be light trading day, with most European and Asian markets closed today. With light trading we find Europe is mixed with the FTSE in the green while the DAX, CAC 40, and SMI are solidly in the red.
