Japanese yen is lower today, sliding against major currencies as traders express their expectations for monetary easing by the Bank of Japan. Between US Treasury yields and possible BOJ easing, the yen is likely to continue losing ground to other currencies.
Aussie is heading higher today, but its direction is far from certain. Australian dollar has overcome some earlier losses to the US dollar, and it is gaining against European currencies right now.
US dollar performance is mixed today as Forex traders look for direction and mull economic data. Yesterday, July retail sales showed a bigger improvement than expected, but the latest retail-level inflation data shows flatness. As a result, QE3 may not be an immediate occurrence.
Euro is giving up its earlier gains against the US dollar today as better news out of the United States gives the greenback the edge. With the latest retail sales data, the US economy appears to be in a better place than the eurozone economy, and that means that the euro is losing ground to the dollar.
Expectations that stimulus measures will be forthcoming, and that central banks around the world will act to boost the global economy and stave off a eurozone collapse, are helping high beta currencies today, and sending the Japanese yen lower.
UK pound is mixed against the other majors today, heading higher against the US dollar, even as the pound drops against the euro. Investors are awaiting UK data, which is expected to be weak.
US dollar is pulling back today as Forex traders decide to go for a taste of yield. Over all, risk appetite hasn’t truly returned, but the US economy is just slow enough that many are re-evaluating their positions and paring back recent gains for the greenback.
Uncertainty about the fate of the eurozone is once again front and center in the markets, and that is sending the euro lower. The ECB has failed to act as quickly as many would like, and disappointing German data is dragging on the 17-nation currency.
US dollar is heading higher today, surging ahead of its high beta counterparts as improved economic data is reported, and as risk appetite flees in the wake of disappointed ECB hopes.
Japanese yen is gaining today, heading higher as Forex traders show caution. Concerns about what’s next for the eurozone are once again front and center in the markets. Yen is gaining as Forex traders reduce their riskier positions in favor of a more measured approach to the situation.
