Facing a tremendous general recession fear, the forex market opened to a yen rising against the dollar and euro, as more signs of economical weakness in the U.S. hit the FX market.
Despite the fact that governments all over the world have been injecting massive amounts of money into troubled banks, looking to reduce the cost of interbank borrowing, traders are still very much focused on the credit and economical situation, as they see the markets fall.
Signs of trouble have began to show in the emerging economies in Eastern Europe and Asia, Forex traders have reversed trading with low-yielding yen, helping lift the Japanese currency against stronger rivals.
The U.S. dollars have benefited from risk aversion and gained on the euro. Early this morning the dollar was down versus the yen JPY-TN 101.4 and the euro came closer to a three year low around 132.
The economic data released from the U.S. this week has completely discouraged traders, showing lows on retail sales and industrial development.
The U.S. currency has managed to maintain its spot on top of most currencies in the FX market, as risk aversion has led traders to stock up on dollars as a safety measure.
The euro, on the other hand, is coming close to a three year low, and it seems to only continue falling.
Another forex currency, the Australian dollar, was down 2 percent against the U.S. currency.
To complement the already unstable forex atmosphere, Ukraine and Hungary turned to the International Monetary Fund and other financial leaders, looking for help to improve their economical situation.
Forex market continues showing mix signals as to the path it will follow, and the traders uncertainty grows along with them.
