Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: FX Rates
|  | | December 01, 2008 | | Impending rate cuts support yen on the FX market | The Japanese yen is rising in currency trading on the FX market as risk aversion plays its part. With the ECB and the BoE set to lower rates this week, the carry trade is being shunned.
Additionally, the yen should receive support soon from the fact that the Australian and New Zealand central banks are expected to ease policy as well. This will further dilute demand for the risky carry trade.
Japanese officials are so concerned about the yen in currency trading that they are planning to hold an emergency meeting to try and figure out what to do.
| Topic Tags: carry trade, currency trading, FX market, Japanese yen currency trading, rate cuts, risk aversion, yen FX market | |
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