Thursday, November 13, 2008

JPY Rallies on Safe Haven Flows

Burgeoning fears of a potentially severe global economic recession continued to prop the dollar and yen higher amid sentiment that the ECB and BoE will need to aggressively ease policy to stimulate their economies. Safe haven flows propped the greenback to 1.2729 versus the euro and 1.6046 against the sterling, while the yen surged to 123.17 to the euro and 154.61 versus the pound. Global equity bourses extended recent losses, with the Dow Jones and Nasdaq trading under heightened volatility and whipsawing by the afternoon session.

Weekly jobless claims released earlier in the session unexpectedly crept higher, edging up to 478k, versus 461k in the previous week. On Friday, the data slated for release include September existing home sales, which seen up slight at 4.93 million units.


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