By ForexYard – Riskier currencies like the euro and British pound tumbled vs. their safe haven rivals in early morning trading today, following news that the Japanese government would not intervene to limit recent yen gains in the marketplace. The yen has seen strong growth in the last few weeks, prompting rumors that the government would take measures to bring the currency down to less volatile levels against the dollar and euro. Drops in the global stock market also contributed to investors abandoning their more risky assets.
EUR/USD has dropped some 60 pips since last night, and is currently hovering right around the 1.2760 level. Against the yen, both the euro and UK pound have fallen approximately 50 pips since last night, and the pairs are currently trading around 109.00 and 0.8210 levels respectively.
This afternoon traders will want to pay attention to the Canadian Core CPI Figure, set to be released at 11:00 GMT. As the only piece of significant news set to be released today, it will likely lead to heavy market volatility. The CAD has seen fairly substantial growth over the last few days. Should the Core CPI figure come in at its predicted level of 0.1%, traders can assume these gains are likely to continue.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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