Credit Crunch Fears Shake The Global Markets
Yen gained against the dollar on fears about the credit crunch and housing market decline. Investors cut bets in the carry trades as the worlds stock markets took a tumble today. Carry trades are considered hi risk investment. Naturally in a time of crises, the investors orient themselfs toward lower risk assests.
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Here's how the currency pairs look at the moment I'm typing this. The usd/jpy is at 103.23 down over 100 pips since yesterday. The dollar is at a week low against the yen. The aud/jpy is at 99.10 50 pips down from yesterday's low, same as the nzd/jpy which is down to 79.95.
The yen remained almost unchanged against the euro and the pound, primarely on good news coming from europe. Wolfgang Franz, president of the ZEW Center for European Economic Research and economic adviser to the German government, said the European Central Bank may have to ignore the economy's weakness and increase interest rates to curb inflation. The gbp/jpy stands at 203.18 and eur/jpy at 161.75.
World stock markets took a tumble today with dow jones leading the fall losing over 200 points today or 1,53%. The FTSE lost 2,5%, and all the major worlds stock markets are down today.
It will the interesting to see the minutes of the fed meeting that are coming out tommorow. Tommorow we also have the minutes from the Bank of England. These two events will help us see how the central banks plan to act in the future. For now lets see how far the fears about the credit crunch will take the market this time. this thing isn't over yet!
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Labels: aud/jpy, credit crunch, eur/jpy, gbp/jpy, jpy, nzd/jpy, usd/jpy
posted by fxkingg @ 10:46 PM
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