The Japanese Yen fell across the board on Wednesday as a surprise, Holiday week comment from Standard and Poor’s shook the Forex world on one of the quietest trading days of the year. The esteemed rating agency said Japan’s credit rating could be in danger if policy initiatives fail to stabilize and gradually reduce the country’s debt burden. It seems as if the silent majority’s thoughts have started to be taken up and vocalized by a major player in the assessment of financial markets. Overall, with Japanese markets closed on Thursday and US and European markets closed on Friday, it seems as if the true test of S&P’s words will be seen next week.
At 10:30PM GMT, the Japanese Yen was trading down .26% against the US Dollar to 1.4329, down .43% versus the Euro to 132.55, down 1.61% to the British Pound Sterling to 148.61, down .47% to the Australian Dollar to 82.67 and down .52% to the Swiss Franc to 89.13.
The US Dollar reversed course from its recent slump on Wednesday, the second to last trading session of the year and decade, amidst not much news and very light trading. Everything that has happened in the Forex this week cannot be attributed to any specific piece of data, rather it is the expectations that the New Year brings that has fueled the market. The few traders who were sticking the final days out were talking mostly of the January 8th employment data, which covers the December Non-Farm Payroll, and how analysts are predicting a positive number. You can tell there is not much going on when the talk on the street is about an event that is not going to happen for another ten days.
At 10:45PM GMT, the Dollar was up .2% to the Euro to 1.4329, up .1% against the British Pound to 1.6067, up 1.13% to the Canadian Dollar to 1.0552, up .2% versus the Aussie to .8939 and up .11% against the Swiss Franc to 1.0369.
Hope for the future…..
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