US dollar is surging against Japanese yen today. The result is a strong expectation for Japanese company earnings, and hopes that things can get back on track for Japan, now that yen weakness is more pronounced.
US dollar topped the 80 level against the yen for the first time in months as the Nikkei soared. Japanese companies are looking forward to a new fiscal year, which begins in April. The news of a weakening yen against the US dollar is prompting hopes for bigger earnings for Japanese companies, and stronger exports, since the weaker yen will increase the appeal of Japanese products. The result is a strong performance by the Nikkei.
Against other currencies, though, the US dollar isn’t as strong. Greenback is higher against the euro, but only slightly. Additionally, the US dollar has just barely moved higher against the UK pound. Markets are looking for direction just ahead of the US session. European markets are lower as investors and Forex traders contemplate the hurdles still in the Greek debt situation — and the hurdles the rest of the eurozone still faces.
For now, it appears that the Forex market is see-sawing. Perhaps a little more clarity will come as the day progresses.
At 14:27 GMT USD/JPY is up to 80.2475 from the open at 79.7600. EUR/USD has slipped to 1.3232 from the open at 1.3233. GBP/USD is down to 1.5658 from the open at 7.5778.
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