FX Rates show Soft Yen for Mid Week

FX Rates

Mid-week for the second week of September 2013 has begun. News is still circling Syria and USA movements. FX rates increased for the USD/JPY after Obama held a televised speech regarding Syria. Other news headlines included recovery for China, where their data is creating new hopes for investors. Amid all the headlines much is focusing on Asia at the moment and how it is reacting to in country and world issues. Find out more on the two main updates.

FX Rates Soft Yen after Syria Talks

The Euro and other “risk” currencies held firm for the Wednesday open. The yen did not hold, but rather lost a bit of value hitting new lows for the week. The yen seemed to lose against news that a diplomatic solution might be underway. This was after President Obama held an early morning speech. Other currencies are waiting to see if the strike will be on hold. It was also held due to the Chinese recovery news.

For FX rates on the USD/JPY the trade was 100.40 with a high of 100.47 for Tuesday. It was the highest the rate has been in favour of the USD, meaning it was actually low for the yen. Syria was given a proposal Tuesday by Russia. The agreement was for Syria to give up all chemical weapons to help push a diplomatic solution versus an air strike from the USA.

The hope is that tensions are going to be eased for Syria. There is further hope that this easing will lead the FED to start up the stimulus tapering it has talked about for half a year. Experts in Japan believe the market FX rates will continue above 100 for the yen as long as the FED follows through on the tapering. The yen also hit a four month low with the sterling and euro at rates of 158.04 and 133.82 respectively. Despite the yen movements for these currencies, the EUR/USD was holding at $1.3265 after the dollar gained a little with a new low at $1.31045 last Friday.

Remember, the fewer dollars it takes to make a euro the more value the dollar has against the euro.

New Hope for FX Rates

Despite new hope that FX rates are going to favour the USD and decrease yen value, things are definitely not certain for Syrian issues. A solution has not been found, although there is now promise that one can be reached without military action. For the moment the presidential details on Syria are in focus.

Another area of focus is on China and its recovery. This has helped the AUD gain to a new high of .9320. It is thought that many economies like China will start to see improvement with the stimulus programme coming to an end. While uncertainty still exists for the market worry is not holding back FX rates. Part of the yen increase in value of late has been for its safe haven status over Syria. Chinese recovery is also going to help the Asian markets change in rates.

 

 

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