The Japanese Yen took a step down on Thursday as it edged closer to a 4-month low as investors viewed the Bank of Japan's latest easing steps in a more positive light.
The Euro and Dollar remained steady as investors look ahead to some crucial events in the US over the next few days, chief among them is Friday's jobs report and the US elections on Tuesday.
The Yen fell against all 16 of its major peers for a third consecutive day earlier today.
The Yen was down 0.4% to 103.75 per Euro on news that Panasonic Corp. has forecast the second largest loss in the company's history, saying the net loss may total 765 billion Yen in the year ending March. Nintendo Co., the world's largest maker of video game machines, also is struggling having cut its full year net income projection by 70% blaming a stronger Yen. This has caused concerns to mount that Japan's trade deficit will worsen.
As against the Dollar the Yen was down 0.3% to 80.04.
I think at this time, that we are heading into an era of Yen weakness on the back of expectations of additional monetary easing by the BOJ and very low earnings in the electronics sector coupled with the prospect of a widening trade deficit.
On Tuesday the BOJ had boosted its asset purchase program by 11 trillion Yen ($137 billion) to 66 trillion Yen, in order to stimulate growth through lower borrowing costs.
Japan currently has the biggest trade deficit for a fiscal half year, as imports exceeded exports by 3.22 trillion Yen in the six months ended 30th September.
In contrast, the Aussie was close to two week high following Chinese data that, as I expected, has shown that manufacturing has improved in what is the worlds second largest economy.
The Euro and Dollar remained steady as investors look ahead to some crucial events in the US over the next few days, chief among them is Friday's jobs report and the US elections on Tuesday.
The Yen fell against all 16 of its major peers for a third consecutive day earlier today.
The Yen was down 0.4% to 103.75 per Euro on news that Panasonic Corp. has forecast the second largest loss in the company's history, saying the net loss may total 765 billion Yen in the year ending March. Nintendo Co., the world's largest maker of video game machines, also is struggling having cut its full year net income projection by 70% blaming a stronger Yen. This has caused concerns to mount that Japan's trade deficit will worsen.
As against the Dollar the Yen was down 0.3% to 80.04.
I think at this time, that we are heading into an era of Yen weakness on the back of expectations of additional monetary easing by the BOJ and very low earnings in the electronics sector coupled with the prospect of a widening trade deficit.
On Tuesday the BOJ had boosted its asset purchase program by 11 trillion Yen ($137 billion) to 66 trillion Yen, in order to stimulate growth through lower borrowing costs.
Japan currently has the biggest trade deficit for a fiscal half year, as imports exceeded exports by 3.22 trillion Yen in the six months ended 30th September.
In contrast, the Aussie was close to two week high following Chinese data that, as I expected, has shown that manufacturing has improved in what is the worlds second largest economy.
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