By TraderVox.com
Tradervox.com (Dublin) – The greenback is set to make a monthly gain against the yen prior to reports forecast to show consumer spending increased by most since February. Speculations that Fed Chairman Ben S. Bernanke will signal additional stimulus as he speaks at Jackson Hole diminished after a report from the central bank indicated that the economy had had a gradual growth in the second quarter. The euro also increased against the yen to the highest level in two months after European Central Bank President indicated that Germany would be better off if it accepted the extraordinary measures the bank is planning on taking to protect the euro.
After these statements, Ray Attrill, who is a Foreign Currency Strategist in Sydney at National Australia Bank, indicated that the market is reducing its expectation of a signal of policy easing this week, hence the causing the dollar to strengthen against the yen. Bill Gross of Pacific Investment Co. indicated that the Federal Reserve will have to announce more easing sooner rather than later, but added that the Fed Chairman might fail to announce or signal any move when he speaks at Jackson Hole. Gross also added that if the Fed adopts quantitative easing measures, this would have limited results on the economy.
The US currency increased by 0.3 percent yesterday against the yen to trade at 78.71 yen, but later dropped a bit to close the day at 78.63 yen. The greenback closed the day at $1.2555 against the euro after it increased by 0.3 percent to trade at $1.2530 during the New York trading. On the other hand, the 17-nation currency increased from 98.62 to 98.73 yen. The euro had touched 99.81 yen, the highest since July 5 on August 21.
The US dollar has advanced by 0.6 percent this month against the yen but it has lost 2 percent against the euro in the same period. The 17-nation currency has increased by 2.7 percent against the yen.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
