The Yen Falls To Three-Month Low As Abe Wins

The Yen Falls To Three-Month Low As Abe Wins


On Monday, the Greenback hit a three-month high vs. the yen, with traders betting that an emphatic election victory for Liberal Democratic Party of Japan (LDP) could see a continuation of the super-loose "Abenomics" policy while kept downward pressure on the JPY.

  • The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 93.908 pips.


The Euro declined from over a 2 years peak of $1.2092 scaled on September 8, as traders waited and watched for the next big development in Spain. Looking ahead, traders are awaiting the ECB’s policy meeting on Thursday. The single currency fell as much as 0.31% vs. the U.S. dollar to settle at $1.1747. On the release front, markets are awaiting Euro-Zone Consumer Confidence.


The Sterling pound edged lower vs. the Greenback to $1.3175. No reports are due from the UK today. 


The JPY fell to a three-month low against the Greenback, with USD/JPY ¥113.81 as Japanese Prime Minister Shinzo Abe's ruling party secured a two-thirds "super majority" at Sunday's election. Shinzo Abe’s big win gave the green light for a continuation of Japan’s super-easy monetary policy, in a reassuring signal for the global bond markets. 


Gold prices declined as the Greenback showed strong gains after Japan's Premier Shinzo Abe resoundingly won re-election, signaling continued of Japan’s hyper-easy monetary policy. Gold Futures - Dec 17 was down 0.28% at $ 1,276.94. 


Earlier today, Oil prices edged up oversupply worries in the Middle East while demand in Asia keeps on rising. China's oil demand is still voracious, touching a January to September average of 8.5 million barrels per day (bpd).

Crude Oil WTI Futures - Dec 17 rose as much as 0.27%, to settle at $51.98, while Brent Oil Futures - Dec 17 fell as much as 0.12%, to settle at $ 57.68

Economic Calendar (all times in GMT)

  • EUR Euro-Zone Consumer Confidence (OCT A): (GMT 14:00) – Medium- Forecast (-1.1) – Previous (-1.2).

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat