Currency Report
It appears that this week is going to be driven by fundamental factors. Economic releases from the developed countries and the upcoming G7 meeting will be affecting the currencies, specifically for Canada (CAD-Canadian Dollar) and Japan (JPY-Japanese Yen).
With oil rising in price, it is expected for the Canadian dollar to react to those prices. Being that Canada is an oil exporting country, it is beneficial for both the country's economy and the currency that oil continue to increase. Though it did not react to this increase last week, it is expected to do so this time and may range trade with the US dollar.
As for the Yen, its action will be decided by the G7 meeting. The financial minister of the Eurozone may pressure the Japanese to drive up the price of the Yen. Over the span of a few months, the Yen has traded over 119 compared to the US dollar. Being that one dollar can purchase so many Yen, it has no doubt driven up Japanese exports and has helped the Japanese economy flourish. However, China's subsidies and their subsequent effect on US trade in the country may put the US in a position to ask the the Eurozone minister to stabilize currencies in the entire region, Japan being one of these countries.
In the meantime, keep an eye on the economic releases and the minutes of the G7 meeting to stay ahead of the game.
With oil rising in price, it is expected for the Canadian dollar to react to those prices. Being that Canada is an oil exporting country, it is beneficial for both the country's economy and the currency that oil continue to increase. Though it did not react to this increase last week, it is expected to do so this time and may range trade with the US dollar.
As for the Yen, its action will be decided by the G7 meeting. The financial minister of the Eurozone may pressure the Japanese to drive up the price of the Yen. Over the span of a few months, the Yen has traded over 119 compared to the US dollar. Being that one dollar can purchase so many Yen, it has no doubt driven up Japanese exports and has helped the Japanese economy flourish. However, China's subsidies and their subsequent effect on US trade in the country may put the US in a position to ask the the Eurozone minister to stabilize currencies in the entire region, Japan being one of these countries.
In the meantime, keep an eye on the economic releases and the minutes of the G7 meeting to stay ahead of the game.
posted by Ian Bellamy at
2:50 PM
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