U.S. dollar has already entered the Christmas flat market zone and is trading on the very low volumes. During the Asian session today it managed to lose just 0.1% to Japanese yen as the latter gained from the good news from Merrill Lynch.
Yesterday USD/JPY hit its monthly maximum level at 114.48 — the rate that hasn’t been seen since November 7. Today USD/JPY touched 113.92 and then retreated up slightly- to 114.15 and is trading very slowly now.
The news that Merrill Lynch is going to receive about $6.2 billion funds from two investment groups added a much needed optimism to the U.S. financial sector. In its turn the positive reactions on this news added confidence to the carry traders strengthening yen against major
There is really no much to expect out of the currency rates movement during the holidays period. But it is worth to mention that dollar is ending this year with bullish trend wave and the first half of January 2008 will probably set the mood for the next year’s Forex trading.
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