Weekly Forex Currency Trading News Update

The Japanese yen declined to a 6-months low against the United States dollar with its biggest weekly lost against the dollar since November, as improving economic data decreased expectations of further monetary easing in the United States. The Bank of Japan also stated that it increase the size of its assets purchase funds. The cost of living in the United States rose less than forecast in January, then it support the views of the Federal Reserve that inflation would be contained in the United States.

Furthermore, Consumer Price Index increased 0.2% with no change in the previous month; additionally the unemployment rate is starting to drop in the United States reaching a 3-Year low of 8.3% in January. The Japanese Yen was last seen trading at a level of 79.54, an increase of 0.79%.

The euro declined against the dollar after Moody downgraded the debt ratings of six European Nations, the Euro weakened after Moody downgraded Italy, Spain and Portugal and it announced that it may downgrade France, the United Kingdom and Austria of their AAA rating due to their debt crisis.

On the 20^th of February, Finance Ministers in the Euro Zone would meet to decide on the Greek financial bailout, to determine whether to deliver a second day package to Greece worth €130B. The Euro quickly lost against the United States dollar remained limited as German Chancellor Angela Merkel, the Italian Prime Minister and the Greek Prime Minister expressed optimism that an agreement on the debt crisis can be reached and the European Central Bank took part in a bond swap for Greek debt. The Euro was last seen trading at 1.3140, an increase of 0.09%.

The Canadian dollar gained during the week as investors’ appetite for risk increased on optimism of deal on the Greek bailout would be reached on a meeting of the Euro area Finance Ministers on the 28^th of February. Additionally, crude oil which is Canada’s largest export increased. The Canadian dollar was last seen trading at 0.9969, an increase in of 0.05%.

In commodities, crude oil rose to a 9-month high on indication of an improving economy in the United States and progress on the Greek bailout, improving prospects for increased fuel demand. Crude was last seen trading at $103.60/barrel, an increase of 0.94%.