Top Stories
by ForexNewsNow Team on August 3, 2010

USD/JPY sinks to new 8-month low amid Fed easing talk

NEW YORK (Forex News Now) – The dollar sank to a fresh 8-month low against the yen on Wednesday, amid speculation over new credit-easing measures by the Federal Reserve and ahead of key U.S. jobs data.

In late Asian currency trading, USD/JPY struck 85.39, its highest since Nov. 27 last year. The currency pair later rose slightly to trade at 85.47, down 0.38 percent on the day.

The talk over additional easing by the Fed came after The Wall Street Journal published a report on Tuesday, saying that the U.S. central bank may plow back into the market for Treasury bonds or mortgages once their similar holdings mature.

According to forex analysis, USD/JPY was likely to touch immediate support around the low of Nov. 17 last year, 84.8, and encounter resistance around the high of July 30, 86.92.

Later Wednesday, the world’s largest payroll processor, ADP, was due to publish a key monthly report on the change in the number of people employed in the U.S. private sector, which was expected to rise by about 38,000.

Elsewhere, the yen rose against sterling: GBP/JPY traded at 136.43, down 0.31 percent.

By ForexNewsNow Team

This is a general account of the ForexNewsNow Team. It is used to published exclusive content carefully crafted by our experts as well as it is used to bring you the most recent industry highlights from our guest contributors that wish to remain anonymous.

More content by ForexNewsNow Team

Comments (0 comment(s))