TODAY'S BIGGEST PERCENTAGE MOVERS
THE STORIES IN THE CURRENCY MARKET
- USD: DOES MOODYS AND NFP MEAN DOUBLE TROUBLE?
- EUR: ANNOUNCEMENT ON GREECE PENDING?
- GBP: HAMPERED BY DOVISH MPC COMMENTS
- AUD: LIFTED BY SURPRISE RISE IN RETAIL SALES
- NZD: HOLDING ABOVE 0.81
- CAD: GOLD AND OIL UNCAHNGED
- JPY: KAN SURVIVES NO CONFIDENCE VOTE
EXPECTATIONS FOR UPCOMING FED MEETINGS
|CURRENT US INTEREST RATE: 0.25%|
|6/22 Meeting||8/09 Meeting|
|CUT TO 0BP||42.0%||47.7%|
|HIKE TO 50BP||0.0%||0.0%|
The Japanese Yen traded lower against all of the major currencies with the exception of the Swiss franc. While Japanese Capital Spending (excl. Software) rose more than expected by 4.2 percent, the currency has hampered by an improvement in risk appetite. The big story in Japan centered around politics. Japanese Prime Minister Naoto Kan survived a no-confidence vote by a wide margin of 293-152 by offering to resign once the country has recovered from the earthquake. Even before the disaster, Kan's government was not in public favor and now a leadership change has simply been delayed. According to a recent Pew poll, 79 percent of Japanese feel that Mr. Kan handled the aftermath of the March 11 earthquake, tsunami, and nuclear crisis poorly. Unfortunately as Bank of Japan board member, Seiji Nakamura told reporters "Japan cannot allow, and does not have room, for an interruption of policy or paralysis when it needs to deal with the aftermath of the earthquake and the Fukushima nuclear disaster." What deserves equal attention from the Japanese government right now is the passage of budget bills necessary to keep the government operating. Tokyo is nearing its borrowing limits, and without entitlement program reforms, the massive debt will spiral out of control. Looking ahead, there are no major economic reports out of Japan which means that USD/JPY will be at the whim of the U.S. employment report.
USD/JPY: Currency in Play for Next 24 Hours
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