Yen Dives to Lowest Level this Month

Yen Dives to Lowest Level this Month

Currencies

USD

There is much mixed behavior today when speaking of the U.S. dollar. On the one hand, it has made inroads into the yen. On the other hand, it is trading much lower versus the loonie. The reality is that there is optimism in the currency market this morning. Therefore, the dollar may continue its bullishness versus the Japanese currency and British currency. However, the declines versus the EUR may well continue.

JPY

The Japanese yen dived to its lowest level this month as the Bank of Japan continued to boost lending. Moreover, the monetary stimulus program was bolstered, which has put a lot of downward pressure on the Japanese currency. Among the biggest losses this morning have been capped versus the greenback. The markets have acted positively to the decision by the BOJ to expand its monetary stimulus program. In fact, the result has been the JPY tumbling versus all 16 of its major currency counterparts this Tuesday morning.

GBP

The pound has slid on all fronts this morning before the release of some important inflation data from the British economy. Traders have decided to ditch the pound after it made some very big gains versus the greenback. The GBP/USD currency pair has tumbled this morning by 0.16 percent to the $1.6685 level. The EUR/GBP cross is currently trading higher by 0.24 percent at 82.20 pence.

Stocks/Indices

There was no trading in the U.S. yesterday, so attention turned to other markets. We did see a lot of bullishness in Asian stocks which has continued into this morning’s trading session.

The gains for Japanese and other regional equities in the region came about this Tuesday morning after Japan boosted its lending program. However, note that shares in China slumped as it was revealed that China’s central bank drained liquidity from the nation’s financial system.

The MSCI Asia pacific Index climbed 0.9 percent. Japan’s Topix Index jumped 2.7 percent. Indexes in Australia and Taiwan were also able to gain during the Asian session.

Commodities

Crude Oil

The crude oil binary option has managed to make gains of about 24 cents this morning to trade at the $100.37 level. Traders are in the mood to go long on the black gold today as the USD is rather mixed. Moreover, there was a very important rally in Asian stocks. With there being so much bullish sentiment in the markets at the moment, traders are of the view that this is a good enough reason for them to go long on the majority of commodities such as crude oil. More gains may be on the cards in the coming hours of trading.

Gold

Gold is trading higher by about $1 this morning, trading near its highest level in three months, there has just been much more confidence in the yellow metal in the past few trading weeks.  The fact is that the dollar is not strong today, which is a factor helping gold. However, take not that the gains for gold are not great this morning, and the yellow metal may become vulnerable in the coming hours.

Wild Card

Crude Oil

Crude oil futures have been hovering above the $100 level for a good few days now, as investors are of the view that the commodity is still hot. It is being boost this morning following the stock market rally which we saw in the Asian markets. In addition, Japan has taken some moves to boost economic stimulus. Therefore, this is a sign to traders that leading central banks are willing to take risks in boosting growth.