Heavy Dollar bids, remote rate expectations and moved the Gold to yet another historical record ever so close to the 1200$ mark reaching to as 1195 an ounce marking it as one of the best performing assets for the recent period. Silver also edged higher trading around 18.8$ an ounce but failed to surpass 19$ and in the Energy space oil gained as growth bets were on and EIA crude stocks were lower than expected. The black gold edged around 78$ a barrel just 2$ short of the 80$ mark.
The Day Ahead
The Japanese Yen is expected to be at the centre of attention as the day will be largely loaded with Japanese economic data. Highly important economic figures are due, such as the National CPI ex-fresh foods the main index for inflation in Japan and Japanese unemployment which is expected to rise to 5.4%.The combination of inflation readings which pointed deflation in the last reading alongside the growing debate between the BoJ and the Japanese government over handling deflation and the Yen which is at 13 Years high against the Dollar is expected to bring the Japanese currency to the centre of attention with potential volatility during the Asia session. LONDON (Dow Jones)--The dollar has edged back up after Wednesday's drubbing, but analysts and investors say it is still vulnerable to further losses, particularly as the yen shoots higher. Traders have reined in their dollar selling against the euro, sterling, and the Australian and New Zealand dollars overnight, partly because of a fresh bout of investor nerves surrounding the possibility of a debt default by Dubai. Still, with trading volumes light on the U.S. Thanksgiving holiday, further sharp moves are possible. A sweep higher in the yen, which took the currency to a 14-year high against the dollar in late Asian trading hours, also poses a threat to the buck, as it could encourage more investors to switch out of selling yen and into selling dollars in order to seek higher returns elsewhere. "The dollar could take the yen's place as the key funding currency for the carry trade," said Steven Barrow, a currencies analyst at Standard Bank in London. While the dollar nudged higher against most major currencies in early European hours, it tumbled heavily against the yen, dipping as low as Y86.29--a 14-year low--before stabilizing. The Japanese currency also soared against sterling, and the Australian and New Zealand dollars. The chance of Japanese intervention to turn this around is now key. "I don't think the market will relent until they provoke the Japanese Ministry of Finance," said Stephen Jen, chief currencies risk taker at hedge fund BlueGold Capital in London. The Japanese authorities made it clear Thursday that they are watching the yen's levels closely. Analysts at Barclays Capital in London said that, on a technical basis, there is now little support for the dollar against the yen until it hits an all-time low at around Y80. At 1010 GMT, the euro was trading at $1.5090, according to EBS, having peaked at $1.5142 in Asian hours. The dollar was at Y86.75, having dipped to Y86.29. Sterling was lower at $1.6552, having peaked at $1.6725 in Asian hours. The Canadian, Australian and New Zealand dollars were mirroring the pound's moves. -By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary http://www.djnewsplus.com/access/al?rnd=no%2F1TU6xfjkV4lOyprHpaQ%3D%3D. You can use this link on the day this article is published and the following day.
The Day Ahead
The Japanese Yen is expected to be at the centre of attention as the day will be largely loaded with Japanese economic data. Highly important economic figures are due, such as the National CPI ex-fresh foods the main index for inflation in Japan and Japanese unemployment which is expected to rise to 5.4%.The combination of inflation readings which pointed deflation in the last reading alongside the growing debate between the BoJ and the Japanese government over handling deflation and the Yen which is at 13 Years high against the Dollar is expected to bring the Japanese currency to the centre of attention with potential volatility during the Asia session. LONDON (Dow Jones)--The dollar has edged back up after Wednesday's drubbing, but analysts and investors say it is still vulnerable to further losses, particularly as the yen shoots higher. Traders have reined in their dollar selling against the euro, sterling, and the Australian and New Zealand dollars overnight, partly because of a fresh bout of investor nerves surrounding the possibility of a debt default by Dubai. Still, with trading volumes light on the U.S. Thanksgiving holiday, further sharp moves are possible. A sweep higher in the yen, which took the currency to a 14-year high against the dollar in late Asian trading hours, also poses a threat to the buck, as it could encourage more investors to switch out of selling yen and into selling dollars in order to seek higher returns elsewhere. "The dollar could take the yen's place as the key funding currency for the carry trade," said Steven Barrow, a currencies analyst at Standard Bank in London. While the dollar nudged higher against most major currencies in early European hours, it tumbled heavily against the yen, dipping as low as Y86.29--a 14-year low--before stabilizing. The Japanese currency also soared against sterling, and the Australian and New Zealand dollars. The chance of Japanese intervention to turn this around is now key. "I don't think the market will relent until they provoke the Japanese Ministry of Finance," said Stephen Jen, chief currencies risk taker at hedge fund BlueGold Capital in London. The Japanese authorities made it clear Thursday that they are watching the yen's levels closely. Analysts at Barclays Capital in London said that, on a technical basis, there is now little support for the dollar against the yen until it hits an all-time low at around Y80. At 1010 GMT, the euro was trading at $1.5090, according to EBS, having peaked at $1.5142 in Asian hours. The dollar was at Y86.75, having dipped to Y86.29. Sterling was lower at $1.6552, having peaked at $1.6725 in Asian hours. The Canadian, Australian and New Zealand dollars were mirroring the pound's moves. -By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary http://www.djnewsplus.com/access/al?rnd=no%2F1TU6xfjkV4lOyprHpaQ%3D%3D. You can use this link on the day this article is published and the following day.
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