Investor Confidence Returning
On Tuesday the Euro rose sharply against the Japanese Yen signaling investor confidence that the coordinated European bailout plan will revive floundering banking systems. The gain followed announcements by Britain, Germany and France to recapitalize their banking systems taking the apprehension out of extreme risk aversion and hastening the selling of the Japanese Yen. The US dollar remained strong against most major currencies providing investors with plenty of Forex opportunity.
Yen Gains Amid Recession Fears
Last week the Japanese Yen saw stunning gains as investor uncertainty over how much deeper the global financial crisis was going to get prompting many investors to unload risky carry trade positions as global share prices fell sharply. The US also announced plans to recapitalize banks. Insiders familiar with the US plan said that about half of the proposed $250 billion would go to the nation’s largest banks. Japan’s Finance Ministry announced plans on Tuesday to stabilize financial markets, including the passage of a law enabling public fund injections into regional banks.
