Yen Keeps Lowering | IFCM
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Yen Keeps Lowering - 15.11.2012

According to yesterday trading results, the US dollar strengthened vs. majors. Euro and Swiss frank were the exception showing a slight growth. However, this day is plenty of macro statistical releases concerning Eurozone that can cause significant changes in the market. The expected news are: the Currency Union GDP for the third quarter and Inflation data in October. According to market forecasts, the GDP in July-September could decline by 0.2%, as same as in the second quarter (see the chart below), technically confirming that the economy in the region is down the recession. There were the news from Germany released today, saying that the GDP rose by 0.2% in the third quarter (previous: 0.3%), while yearly GDP growth lowered from 1% to 0.9%.
Eurozone GDP, Q/Q
One of the most powerful Forex market movements of the two last days is a sharp depreciation in the Japanese yen rate. Thus, the U.S. dollar rose against the Yen this morning, to 80.93, the highest level since April 27th, although it was at 79.50early this week. Euro also strengthened against the Japanese currency to 103.19, gaining more than 200 points in a couple days. The reason for such a sharp decline in yen was a statement Japanese Prime Minister - Noda about possibility of early parliamentary elections, where the Liberal Democratic Party supporting the monetary policy easing, is likely to win. The decline in yen supported the shares of exporting companies, and Tokyo Nikkei 225 index rose to one-week high at 8823.79 (see the chart below).
Nikkei 225, hourly chart
It is also worthy to pay attention to the statistics coming from the U.S. and Canada this evening.
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