USD Weakened Against The Majors, The Japanese Yen Dropped

USD Weakened Against The Majors, The Japanese Yen Dropped



USD weakened against the majors, Except the Japanese Yen.

The risk appetite increased in the markets, sending the high risk currencies higher. The Japanese Yen dropped sharply to the lowest level in nine months, reaching $83.62 this morning. The Japanese stocks gained, and Nikkei 225 index increased 1.6%, reaching 9,742.73.

The large manufacturing outlook in Japan will be released tomorrow morning, and it is expected to be optimistic. It is expected, the new Japanese government will be more aggressive for a new stimulus package. The large Japanese companies suffered a big loss, a result of the strong Yen, and the political dispute with China.

Meanwhile, the US Federal Reserve gave a positive and bullish outlook to the markets. The Federal Reserve will continue its stimulus package to boost the economy, USD weakened. But, the US indexes, including NASDAQ, and DOW Jones dropped yesterday, as a result of the increasing fears about the fiscal cliff.

Euro maintained its gains in the last few days, while the Euro zone leaders remained struggling, and didn’t show a decisive action to contain the debts. They agreed, ECB will supervise the Euro zone banks. ECB will publish its monthly report later today, about the recent economic situation.

It will be very important to wait for the manufacturing PMI from China, tomorrow morning. The reading below 50 will be very negative. The last reading in October was 50.5. It is expected, the Chinese economy will perform better in the next coming months.