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Currency News – Japan Raising Taxes To Help Reconstruction?

There is no doubt that Japan needs some extra financing to continue their rebuilding efforts. The devastating earthquake that hit them in March of this year did a whole lot of damage, and somebody has to pay the bill to fix it.

The Japanese government is considering imposing some new income taxes to pay for the effort. Nobody likes new taxes, but with the way the global financial system is currently, it may be the only option possible. We will have to wait and see what effect, if any, this has on the Yen in the near future if the taxes are implemented.

 

Chances Of A US Recession Rising?

One of the last things the US needs is for their economy to fall back into a full recession, but a lot of the economic indicators are pointing in that direction.

The head of the Atlanta Federal Reserve Bank stated that the fundamentals of the US economy aren’t really getting better, and more action needs to be taken before things get back on track. The debt crisis has been averted for now, but there are still so many issues that will be coming to fruition very soon that need to be taken care of.

The US needs to gain some positive momentum and keep things going in the right direction. Unfortunately, the upcoming election in 2012 is sure to put a halt to that and throw things into turmoil again. Things just don’t seem to be looking any better in the near future for the US.

 

Swiss Franc Continues To Fall

After rising out of control in the past few weeks, it seems as though the Swiss Franc can’t stop falling. On Monday, it fell to a two week low against both the Dollar and the Euro based on the idea that the Swiss National Bank may still be considering pegging it to the Euro.

Many people thought that since the Franc was back to trading at levels that reflected it’s fundamentals and was not artificially inflated, the SNB wouldn’t have to take any further action. But, as of Monday, there is still talk of a currency peg which would have quite an impact on the international currency markets.

There is a very important government meeting that is to take place on Wednesday – there is a good chance that we will know then how the SNB is going to deal with the Franc moving forward. But, until then, there is a good chance that the Franc will be volatile.

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