G-7 Releases Statement, Look To Currency Market Volatility
by Richard Lee
In a surprise move, the Group of Seven industrialized nations released a combined statement in attempts to halt what has been a precipitous slide in currencies trading against the Japanese Yen. Currently trading at decade highs against the US dollar, the yen has strengthened exponentially as risk adjustments and redemptions continue to be made to global portfolios, supporting yen buying.
Noting “excessive volatility” in the current market situation, representatives stated that members continue to “reaffirm our shared interest in a strong and stable international financial system.” “We continue to monitor markets closely, and cooperate as appropriate.” The statements are reminiscent of words issued in 2004-2005 when a similar situation forced the Bank of Japan to intervene in markets as G-7 leaders stood by on the side line. Although too soon to expect, traders are looking for further policy jawboning before any physical action materializes.
Tags: G-7, Japanese Yen
About the Author - Richard Lee
Richard C. Lee is the Chief Currency Strategist for OnlineForexTrading.com. Employing both fundamental and technical models, Richard has previously been featured on DailyFX.com, Bloomberg, FX Street.com, Yahoo Finance and Trading Markets.com. In analyzing the markets, he draws from an extensive experience trading fixed income and spot currency markets in addition to previous bouts in options, futures and equities.
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