InvestTechFx Rep. Talks about the Strengthening of the Japanese Yen and the Danger for the World Financial Stability
Toronto, Canada (PRWEB) November 25, 2008
InvestTechFX the Forex Trading Solutions Head of Customer Relation Department Mr. Green explains that the G7 (Seventh countries leading of the big industrial) has warned that there is a threat to the world financial and economic stability by the strengthening of the Japanese Yen. InvestTechFX the Forex Trading Solutions rep. explained about the coordinate effort to restrain the massive financial crisis over the last century.
InvestTechFX the Forex Trading Solutions rep. commented that the marks of the crisis were seen all over the world, when South Korea has decreased the interest rate by emergency move. Australia has intervene in the foreign currency exchange to protect the Australian Dollar value, the oil countries in the Persian Golf called for urging their monitorial union, and the international currency funds has announced on rescuing plane for Ukraine and Hungary.
InvestTechFX the Forex Trading Solutions rep. highlighted that even the Fed reduced the interest rate substantially and the Prime Minister of Britain has alert that there mite be a coordinate action of the Federal Banks reducing the interest rate. InvestTechFX the Forex Trading Solutions rep. explained that the inflation will go down in the near future and Britain monetarily authorities including The Bank of England will make important interest rate decisions.
InvestTechFX the Forex Trading Solutions rep. said that the worldwide financial markets kept nervously responding the difficult combination of the global recession and the financial crisis. InvestTechFX Forex Trading Solutions rep. explained that the main world stock index of MSCI has dropped over more than 3% in one day, with a loss of 50% since the beginning of the year. The world stock index has the biggest dropping of four years among the emerging markets. MSCI is the World stock market index of ‘world’ stocks. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. The index includes securities from 23 countries, and has been calculated since 1969. The index is calculated without dividends, with net or with gross dividends reinvested, in both US dollars and local currencies (Wikipedia).
InvestTechFX the Forex Trading Solutions rep. commented about the G7 announcement and focuses on the Japanese Yen, which raised dramatically verses the US dollar and threatening the exports when Japan is moving towards a recession. InvestTechFX the Forex Trading Solutions rep. assumes that the major Japanese Bank will intervene on the Foreign Currency Exchange Market to weakening the Japanese Yen after four years avoiding foreign exchange currency market intervene.
InvestTechFX the Forex Trading Solutions rep. commented that the G7 worried about the foreign currency exchange market movement of the Japanese Yen negative implications on the financial and economic stability. InvestTechFX the Forex Trading Solutions rep. mentioned that the G7 announcement regard the US Dollar rising verses other foreign currency exchange except the Japanese Yen; therefore, there was skepticism about a coordinate action at the major banks in the world – at the foreign currency exchange market and the interests effect.
Further more, InvestTechFX the Forex Trading Solutions rep. highlight that the Japanese media has reported that the three major banks in this country are trying to raise a funs to offset the influence of there falling stock prices in the market.
Japan will offer 100 billion dollars for emerging countries economies:
InvestTechFX the Forex Trading Solutions rep. comment that Japan will offer to the international currency fund aid on about 100 billion dollars for emerging economies, in another effort to restrain the fast financial crisis which threatened sinking the world in deep recession.
InvestTechFX the Forex Trading Solutions rep. explained that the investors are waiting for the summit of the 20 largest developed and evolved countries in Asia, and hopping that decisions will stable the world finance markets and be able to stop the falling share prices.
InvestTechFX the Forex Trading Solutions rep. explained about the difficult times, which will come ahead, and said that the Japanese economy might be falling sharp and continues amendment that will fit to the deceleration on the world economy consequently by the financial crisis.
InvestTechFX the Forex Trading Solutions rep. explained about the lawn policy of the Japanese Banks because of the suspicions from the economy and the profit forecast, and its signals on changing in the light credit conditions. Japan has reported on a steep decline in the inflation at the wholesaler prices in October, when the slowing in demand for services and products is getting suspicious from deflation in the world economy, which only few months ago has been struggle with the rushing inflation.
InvestTechFX the Forex Trading Solutions rep. explained that Japanese media reports is considering to raise 3.2 billion dollars for strengthen her balance. This is another sign for the giants Japanese Banks that probably have been avoided from the sub prime American crisis, but they cannot hide from the world economic deceleration, and from the falling shares in Tokyo Stock Exchange.
Japan economy has come to a recession by the negative growth on the second and third quarters;
InvestTechFX the Forex Trading Solutions rep. explained that the Japanese economy has slide to the first recession since seven years on the third quarter, when the world financial crisis has restrained the demand for Japan exports products. Few economists estimate that Japan is entering to the longest recession since the end of the Second World War.
InvestTechFX the Forex Trading Solutions rep. said that third quarter of Japan GDP decreased in 1.5% compared to the second quarter. Japan is one of the biggest economies, which the recession noted in the financial market. The European and US economy is slowing down, by the definition of the second quarters of negative GDP growth.
InvestTechFX the Forex Trading Solutions rep. mentioned that some economists are warning the Japan might pass forth quarter in negative growth, and the economy minister has warned from difficult times in the future ahead. InvestTechFX the Forex Trading Solutions rep. highlight that we need to remember that the economic conditions might decrease more, since in USA and Europe the financial crisis is getting worse and the fears from economic slowing are getting stronger and the foreign exchange currency markets are making large movements.
InvestTechFX the Forex Trading Solutions rep. explained that the finance markets on October, which is still not included in the product data on the third quarter, is adding to the Japanese gloomy forecast, the second largest economy in the world. The Nikkei 225 shares rate has dropped on the quarter since the beginning of October, and the Japanese Yen reached to a 13 years record high last month, which has effected on the Japanese exports and their Japanese Yen’s profits.
InvestTechFX the Forex Trading Solutions rep. explained that the Japanese Central Bank has warned that the fuss in the markets not been ended. The US dollars markets are weakening, in consequence of the high awareness for risks of other markets. InvestTechFX the Forex Trading Solutions rep. highlight that the result is that the Japanese finance market is also becoming unstable. On annual terms, the Japanese GDP went down in 0.4%, while the consensus forecast was in growth of 0.3%. Japan government updated the annual second quarter GDP data, and the negative growth was steep by 0.9%, a negative record on seven years.
InvestTechFX the Forex Trading Solutions rep. explained that the risk that Japan will note three or even four quarters of negative growth is rising, considering that we could not count on the export, because the abroad economies are slowing because of the financial crisis.
InvestTechFX the Forex Trading Solutions rep. said that the Japanese Yen has been weaken after the GDP data were published, but the foreign exchange currency market activists do not predict continues weakening, by the rushing of the investors to currencies with low risk. The Nikkei rate down by 2.5% before it was raise by the end of the trading day.
InvestTechFX the Forex Trading Solutions rep. explained that continues the sign of the negative world slowness on the Japanese companies, the investment in the mechanization have stopped expansion and equipment went down on the third quarter in 1.7%. The growth in the import was higher than the export, and added 0.2 points to GDP decreasing.
InvestTechFX the Forex Trading Solutions rep. explained that Japan has enjoyed by the most continues economic expansion since the end of the World War until last year, most thankfully to the investments of the companies and to the export, until the financial crisis happened.
InvestTechFX the Forex Trading Solutions rep. said that Japan would probably continues to slowdown, since the world economy is effecting and influence on the Japanese export and on the business investments, which will heart also in the local consumption. http://www.investtechfx.com
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.