Dollar falls against Yen following drop in Japan?s GDP

[RTFX-Trading]

Dollar falls against Yen following drop in Japan?s GDP

What?s New?
United Kingdom: Consumer prices and retail prices lower than expected.
United States: Housing starts and permits tumble to record lows.
United States: Weekly retail sales show weak consumer demand.
Japan: Economy shrinks 4% in the 1st quarter.

Today:

10h30 United Kingdom: Bank of England Minutes
11h00 Switzerland: ZEW Survey (MAY), previous -27.7
13h00 Canada: CPI Y/Y (APR), exp 0.60%, previous 1.20%
13h00 Canada: Core CPI Y/Y (APR), 1.80%, previous 2.00%
13h00 United States: MBA Mortgage Applications, previous -8.60%
15h30 United States: Geithner speaks at senate hearing on TARP
20h00 United States: FOMC Minutes

Overnight Rates & Indices:
EURUSD: 1.3651 ? 1.3584.
USDCHF: 1.1125 ? 1.1074.
GBPUSD: 1.5498 ? 1.5452.
EURJPY: 131.33 ? 129.73.
USDJPY: 96.22 ? 95.48
DowJones: 8?474 -0.34%.
NASDAQ: 1?734 +0.13%.
S&P 500: 908 -0.17%.
Nikkei: 9?335 +0.49%.
Gold: $927.30
Crude Oil: $60

Comments:

Slower than expected contraction in Japan?s GDP led to investors selling the dollar to book profits, leading to a fall in US dollar against the yen on Wednesday. The yen also gained against the Euro and Australian Dollar taking back the previous day?s losses.

The dollar edged up against the Euro, on early Wednesday trading after losing ground on Tuesday as caution begins to weigh in as to how far to push the yen and the greenback.

Higher yielding currencies are gaining as investors are more optimistic that the global economy is past the worst and both the sterling and the Australian dollar hit multi month highs against the dollar.

Despite the fall in housing starts and permits analysts have said that the report still offered glimmers of hope for the economy in its 17th month in the global recession.

Investors will now turn their attention to stock price movements because no economic indicators with a big market impact are expected in the US and Europe today.


Good Day


Emman Xuereb
RTFX Ltd
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