The Japanese yen dipped in value against all of its top rivals on Thursday, marking a second-straight day of losses while confidence strengthened about the prospect of manufacturing growth in China, according to Bloomberg.
The currency of the Pacific Rim nation was tugged down by Asian and European equities advancing, which spurred U.S. equities' climb. Results of a private purchasing managers' index in China checked in at its highest level thus far in 2014, which spurred surprise among investors, traders and analysts.
"The dollar is being bought as sentiment turned around," vice president for global markets Yasuhiro Kaizaki with Sumitomo Mitsui Trust Bank Ltd. in New York told the news source on Thursday. "Dollar-yen bounced back above the 200-day moving average, so the risk is skewed for a short-term rebound."
The yen dropped roughly 0.2 percent against both the world's reserve currency and the shared currency of the European Union.
The yen's losses drew down the currency's gains from earlier this week, according to Reuters. The monetary unit also lost value as 10-year yields pushed higher during the Thursday trading session.
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.
