Yen Trading at Highs Last Seen in Early May

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<h1>Yen Trading at Highs Last Seen in Early May</h1><strong> Author: <a href='http://www.articleseen.com/profile_Deep Trust Trading Analytical Department.aspx'>Deep Trust Trading Analytical Department</a></strong><br /><p>Today’s trading in Tokyo opened with a drop in the stock market, while the yen simultaneously strengthened against the dollar. The pair broke through the 80 mark and is now trading around that level at 79.80. Negative data on Japan’s external imbalance in April was the main reason for the yen’s growth; the data on the imbalance was 550 billion yen versus 750 billion yen in March. The yen’s main driver today was the confirmation of rumors regarding China’s record-high purchase of Japanese long-term bonds in April for 1.33 trillion yen. Japanese Minister of Finance Tetsu Inoue said that “China, which possesses huge reserves, is trying to diversify its assets and is possibly planning to have bonds denominated in yen.” China is actually implementing a policy of weakening the dollar against the yuan, and it should consider transferring part of its reserves to alternative assets and currencies so that those reserves denominated in dollars don’t depreciate. China will therefore most likely continue purchasing Japanese bonds and gold. According to the Deep Trust Trading analytical department, other important news from morning trading was the growth of the Russian ruble against the dollar. During morning trading on the MICEX, the ruble rose against the dollar by 8 kopecks to 27.62 rubles. This is the fifth rise in a row by the ruble since the dollar failed to maintain support at 28 rubles for the American currency. Particularly good news for those bullish about the ruble was the report that the Russian Central Bank, along with the Ministry of Finance, might conduct an intervention in order to profit from the strengthening ruble and fill out the country’s reserve fund. Some of the most important news of the day to watch for will be publication of data on oil and gas reserves in US petroleum storage facilities, which will most likely be down. Deep Trust Trading analysts explain that, during the vacation season, a reduction in types of fuel like gas and highly refined distillate oil can provoke an increase in oil prices. The price on Texas light sweet crude is likely to reach $100 per barrel again today, while North Sea oil may also rise from its current $115.70 per barrel to $116 and higher. The market in general is preparing for the publication of decisions on rates from the central banks of Europe and Great Britain; however, it may have to wait until Thursday before placing a bet on the growth of the pound or the euro. The EUR/USD pair is trading close to Tuesday’s closing rate of 1.4672. The GBP/USD pair dropped 0.44% and is now trading at 1.6400. The USD/CAD pair strengthened by almost 0.4%, while the USD/CHF pair continues to look for ways to overcome 83 and trade at 0.8360. </p><strong>About the Author:</strong><br /><a rel="nofollow" href="http://deeptrusttrading.com/">Deep Trust Trading Analytical Department</a><p> Article Source: <a href='http://www.articleseen.com/Article_Yen-Trading-at-Highs-Last-Seen-in-Early-May_63755.aspx'> http://www.articleseen.com/Article_Yen Trading at Highs Last Seen in Early May_63755.aspx</a></p>

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Category : Finance : Currency Trading