How Does The JPY Yen To USD Effectively Affect The Global Economic Outlook

As the markets adjust to the minute by minute updates concerning the Euro, the jpy yen to usd value is affected. The US dollar was softer earlier this week due to an enormous degree of optimism by traders looking to gain higher yields in the market. Since we are all inherently optimists the markets are very ready to read optimism into the mix and the dollar has responded by strengthening slightly against the high beta currencies.

One of the dominant reasons that the US dollar is gaining again is the real concern about the global economy and the state of the European Union. We all want to know what is going to happen to the Euro. Unfortunately some of the early optimism, about what just might happen in Europe, is quickly fading and there are still genuine concerns about the state of economy in the US; which affects the jpy yen to usd.

Let’s take a closer look at what is going on with the Japanese Yen. The JPY lost a little ground to the US dollar earlier this week due to the initial optimism coming from the Eurozone. As this optimism fads, the JPY gains ground to the US Dollar. The challenge is to integrate the individual economies of high beta currencies a little closer to each other in order to minimize the debt crisis.

As a result of this perceived desire to minimize the debt crisis a measure of caution has been introduced into the trading markets. We all want to know just what is going to happen to the global economy. Just how realistic is it to believe that the current debt crisis can be solved and that future ones can be prevented. We wait extending our cautionary measures daily to see what will happen to the jpy yen to usd values.

Initially the JPY had lowered in value, but as the trend continues to be one of delaying the resolution of the Euros position within the Eurozone the JPY has changed direction. In response the jpy yen to usd, shows’ a gain in the yen value against the usd. The US dollar remains stronger than it has been amid US economic concerns. As one would easily predicted the stocks are falling back after a strong initial opening at the beginning of this week of trade.

As a result of all of this jockeying the usd sits slightly higher against other high beta currencies such as the pound, euro and Australian dollar. The jpy yen to usd position leaves the usd lower against the yen. Oil prices have dropped as well as stock values. Oil values slipped back to $101 a barrel just after having broken the $102 a barrel mark.

What does all of this mean? We all would like a resolution to the Eurozone situation. The jpy yen to usd will continue to shift as discussions continue in Europe. We await further announcements from the Japanese central bank and cautiously look to the future.

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