The Japanese yen marked its first losses in six days against the world's reserve currency on Monday after Russian stocks benefited from a Sunday referendum, according to Bloomberg.
The monetary unit of the Pacific Rim nation lost value against all of its 16 major rival currencies after voters in Crimea cast ballots to secede from Ukraine and join Russia. The Bank of Japan might be geared toward delivering more accommodative policy in the near term after the yen's recent advance, according to the Royal Bank of Scotland Group Plc.
"Investment managers continue to hold a very short-yen position, so I think there could possibly be some position adjustments going on," head of forex Bart Wakabayashi with State Street in Tokyo told Reuters on Monday. "Obviously, when there's risk, there's an element of safe-haven flow, but I think there are adjustments going on as well."
The yen dropped roughly 0.4 percent on Monday after notching advances of roughly 1.9 percent last week. The gains of the yen against the common currency of the European Union pushed to roughly 0.2 percent following gains of 1.6 percent last week.
The yen's poor performance was limited by concerns about strengthening tensions between Russia and Western powers after the Crimea vote, according to Reuters.
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.