Yen Falls for Second Day as Stocks Bloom | ForexGen Reports

Monday, September 29, 2008

Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

Today the yen fell for the second day in a row on Forex as the stock markets rallied and the traders looked for the more high-yielding assets, selling the Japanese currency for dollar and other risky currencies.

Although, the U.S. dollar is also heading for the second weekly gain against the Japanese yen, JPY declined mostly against such carry trade favorite currencies as Great Britain pound (5% interest rate) and South African rand (11.5% interest rate!).

Of course, it’s too early to say that the carry trade is back and the financial crisis can be disregarded in the high-risk Forex trading. Most probably It’s just a short-time shift in the investors’ behavior as the U.S. economy is seen to be recovering and the Bank of Japan stance on the interest rates remains far from hawkish.

Some financial strategists still believe that the USD/JPY bottom hasn’t been reached yet and that a global return to carry trade would be really premature at this time.

USD/JPY rose from 104.38 to 104.68 today after reaching daily high at 105.3 — its maximum value since February. Yesterday USD/JPY grew by 0.4%.