Wednesday, November 4, 2009

US Dollar and Japanese Yen stayed the strongest

The Japanese yen and U.S. dollar were the strongest in the majors on a day when the U.S. stock indices pushed more than 2.5 percent. This shows that market relations and risk aversion are active. In fact, the CBOE ViX index of instability, an alarm measures of the market, rose more than 30 for the first time since July. FX carry trade down again, as NZDJPY fell sharply by 3.74%, while CADJPY and AUDJPY lost just over 3%. Similarly, NZDUSD fell 2.2% while AUDUSD fell 1.8%, and the bitter feeling was contrary to U.S. news economic. Certainly, the personal benefits and analysis of staff costs corresponds to the forecast for the month of September as revenue remained the same while expenses decreased 0.5%, the most severe decline since December 2008.

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