May 24, 2007

The Japanese Yen and Spot Forex Trading

Favouring the yen on the spot forex market

Today, it might be profitable to favour the Japanese yen in spot forex trading, and to go long on the currency when placing spread bets and CFDs. The yen is up across the board on the news that Chinese stocks could face a “dramatic contraction” in the opinion of former Federal Reserve chair Alan Greenspan. While there is no telling how long this rally will last for the yen, right now things are looking good for the Asian currency. Bloomberg reports on the performance of the Japanese yen on the spot forex market:

The currency rose to as high as 162.88 against the euro and traded at 163.23 at 7:15 a.m. in New York, from 163.74 late in New York yesterday. The yen rebounded from a record low of 164.02 against the euro reached yesterday. The Japanese currency also climbed to as high as 121.24 per dollar today, before trading at 121.42 from 121.66.

Higher-yielding currencies that benefit from the carry trade declined today. The Turkish lira fell 0.5 percent versus the yen, the New Zealand dollar dropped 0.4 percent and the Indonesian rupiah declined 0.6 percent.