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Currency News – American Dollar And Yen Start To Rise Amid Fears Of Recession

Just as the Yen seemed to be under control and the Dollar was stabalizing, they have started a rapid ascent. On Thursday, they were both up against traditional safe haven currencies, and most people expect this trend to continue on Friday.

When it comes down to it, the fundamentals behind the American Dollar are just too poor for it to stay stable at any level – any small mention of an economic change sends it flying in another direction. The fact that there is no real plan in place in America to get things under control and confidence in Obama and his administration is at an all time low doesn’t really help the situation. If this issue isn’t taken care of soon, we can expect huge volatility all the way to the next election. Things should be in better shape by the end of the year, though.

When it comes to the Yen, the Japanese government is trying their best to keep their level of intervention to a mimimum and ensure their currency stays as a level that reflects their economies fundamentals, but with another rapid ascent, they may have to make another move.

The currency market is very volatile and unpredictable as of now. If you are holding a positive position, it is a good idea to keep an eye on it and don’t be afraid to take some off the table. If you are looking for an entry point, it may be better to wait to the beginning of next week – or look for an entry point in Gold…

 

Asian Markets Bracing For Turmoil After Currency And Market Volatility On Thursday 

Thursday was one rough day for everyone involved in the financial markets. Not only were there huge drops during the American session, but Oil and other commodities also fell quite a bit. This was somewhat unexpected as the first three days of the week were so calm – most people were waiting until next Monday to make any moves.

Since the Japanese market usually mimics the most recent American trading session, there is a good chance that Friday will be a tumultuous session for Asian traders. No one knows what to expect and there is no momentum in either direction. Many Asian investors are choosing to buy Gold or the Swiss Franc to try and stay safe – this may be the best move based on the information we currently have.

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