The Bank of Japan opted against increasing its monetary stimulus program on Friday, prompting the monetary unit of the Pacific Rim nation to advance the most in two weeks against the U.S. dollar, Bloomberg reports.
So too did the Japanese yen climb against the common currency of the European Union, which is falling under greater scrutiny as debt-hampered Greece prepares to conduct its second round of national elections in six weeks. Early May elections in the Aegean nation, which has accepted two tranches of bailout aid since June 2011, were inconclusive and markets are likely to be impacted either way voters cast ballots.
"I think the BOJ will act in July as it assesses developments in Europe," forex and financial products trading chief manager Tsunemasa Tsukada with Mitsubishi UFJ Trust and Banking told The Wall Street Journal.
The central bank left its asset-purchase fund untouched at 40 trillion yen on Friday, which pushed up the value of the Pacific Rim monetary unit against all 16 of its counterpart currencies.
At play in Greece, which is in danger of defaulting on its financial obligations, are austerity measures mandated for the nation to receive bailout aid. Political candidates have presented their ideas as to whether they will abide by those measures.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.