Dollar Yen jumps 100 points from 78.60 in early European trading – FX Solutions Update, 14th July 2011

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Chris Advincula, Chief Market Analyst at FX Solutions (http://www.fxsolutions.com/), provides forex traders with an overview of currency market activity and news on 14th July 2011.

\”The US dollar was consistently pushing the rates lower against the Japanese Yen when Moody\’s Investor Services placed the U.S. under review for a possible downgrade to Aa from Aaa if congress fails to reach an agreement on the budget cuts and/or raise the $14.3 trillion debt ceiling.

As everyone heard yesterday, the Fed Chief Ben Bernanke said\”Policy makers will provide economic stimulus if needed\”. He said that the central bank is prepared to take additional action, including buying more bonds, if the economy appears to be in danger of stalling. Bernanke is scheduled to testify for a second day today.

The Japan Finance Minister Yoshihiko Noda made a similar statement from yesterday, putting the market on alert for a possible BOJ/G7 intervention. (7:36pm EST)

The Yen\’s moves don\’t reflect economic fundamentals

Closely watching market.

Yen\’s move have been one-sided only.

Doesn\’t want the current yen rise to persist.

At 1:40am EST, there were unconfirmed reports that the Bank of Japan and the G7 sold the Japanese Yen against the dollar and the other yen crosses, boosting the rates higher by about 100 points on all the yen pairs across the board.\”

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