By Anton Eljwizat – The Japanese Yen experienced one of its most bullish trading days in recent weeks on Tuesday against the USD. The USD/JPY fell as low as 82.97, its lowest level since mid-1995, after Japan’s prime minister won a ruling party leadership vote, reducing the chances Japanese authorities would attempt to stem yen gains. But overnight the Bank of Japan intervened in the FX market to weaken the yen.
Another developing trend is the recovery of Gold. Since the Dollar began dropping against the majors, gold has risen further and further. Currently traded around $1268 an ounce, if the Dollar will continue to drop, gold could reach $1280 an ounce by the end of the day.
Today’s Leading Indicators
14:30 GMT: US Crude Oil Inventories
• Crude oil’s plunging price has been a headline feature of the market in recent weeks. This release may take precedence over the market as the price of oil has gained relevance to today’s trading.
• A growing level of inventories may signal a lack of demand and push prices lower, while a negative release may highlight a lack in supplies, increased industrial usage, and an overall demand for more oil, which may help oil prices climb back towards $80 a barrel in the short-term.
21:00 GMT: NZD Official Cash Rate
• Forecast shows that the number is expected to stay at 3.00%.
• Therefore, the Impact of the interest rate decision may in fact strengthen the NZD in the longer run.
• Traders should focus their attention on this release, as it is expected to be the highlight of the week for New Zealand markets.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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