The Japanese yen on Thursday climbed against the world's reserve currency, spurred higher after high-level government officials said a Wednesday newspaper report indicating Japan is moving toward corporate tax cuts is off the mark, Reuters reports.
Taro Aso, minister of finance for the nation hosting the globe's third-largest economy, and the top spokesman for the government of the Pacific Rim nation said the report in Nikkei newspaper was not correct. Japanese stocks were losing value as the country's currency advanced.
"The market seems nervous on prospects for Japan's tax policy," fixed-income business department manager Tsutomu Soma with Rakuten Securities Inc. in Tokyo told Bloomberg on Thursday. "Stocks declined on comments that Japan will not cut corporate tax, boosting yen buying."
The yen's softer performance against the U.S. dollar is linked with the prospect of Japan preparing to challenge deflation. Aso said that efforts to pull down corporate taxes will not behoove the drive to confront deflation.
The yen climbed against the greenback yet only was slightly changed against the common currency of the European Union, according to Bloomberg.
Risk Disclosure
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.
