Tuesday saw the Japanese yen lose value against the common currency of the European Union following the finance minister of Japan remarking on a statement issued by the Group of Seven nations, Bloomberg reports.
Finance Minister Taro Aso’s interpretation of the statement issued by leaders of G7 nations is that Japan is not purposefully manipulating exchange rates with aggressive monetary stimulus.
“The statement indicates that there will be little attempt to single out Japan as a currency manipulator at the G20 meeting as long as the Japanese policies deal with domestic issues like deflation and are not targeting the yen,” European G10 FX strategy head Valentin Marinov with Citi told Reuters on Tuesday. “Presumably that will encourage investors to continue doing what they are doing, that is – sell yen across the board.”
Following gains of as much as 0.5 percent against the world’s reserve currency when the G7 statement was issued, the yen proceeded to lose value.
The past 90 days have seen the Japanese yen lose 18 percent of its value, according to Bloomberg. Prime Minister Shinzo Abe has emphasized monetary stimulus as a method of spurring the globe’s third-largest economy.
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.