Yen drops after Crimea referendum vote, eyes to focus on Fed meeting .. . . . . . . . . . . . . The Japanese yen fell against majors on Monday as a rally in Russian shares damped demand on the yen as a safe haven. The yen traded lower for the first time in five sessions against the U.S. dollar despite a referendum in Crimea which showed a 96 percent vote to leave Ukraine and join Russia. Tensions may soon arise as the referendum is deemed illegal by the U.S. and Europe and therefore it seems that sanctions on Moscow are coming ahead. The USDJPY rose from a low of 101.27 to hit a peak of 101.85, while it is currently trading around 101.80. The dollar rose for the first time four days versus a basket of major currencies, as indicated by the dollar index, to hover around 79.50 after hitting a bottom of 79.38. The main focus this week will be in the Fed meeting as investors want to know whether policymakers would continue with their stimulus reduction plan. Analysts predict another $10 billion bond purchases cut to $55 billion during their two-day meeting on March 18-19. The EURUSD is currently trading higher around 1.3892 after touching a high of 1.3914 and a low of 1.3878. The European common currently slipped after a report showing euro area inflation unexpectedly dropped to 0.7 percent in February from 0.8 percent. The fall in inflation below the ECB target of 2 percent raises speculation the ECB will intervene next month to stave off deflation. The GBPUSD retreated to 1.6625 after hitting a high of 1.6651 and a low of 1.6622. investors will give attention to BOE minutes for March’s monetary decision and unemployment data. U.K. Chancellor of the Exchequer will announce budget to Parliament, amid signs of recovery from the economy. #egyptyard
Posted on: Mon, 17 Mar 2014 11:50:56 +0000
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