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The latest forex coverage from the TrustFinance editorial desk.
The Japanese yen has erased much of its recent gains to become August's worst-performing G-10 currency, raising expectations that Japanese and U.S. authorities may be forced to intervene again to halt its decline.
The United States and Japan conducted a joint currency intervention on July 31 to support the struggling yen, a move aimed at pushing the USD/JPY pair below the key 155 level after unilateral efforts by Tokyo proved insufficient.
The pound sterling rose against the U.S. dollar on Monday, as markets continued to digest last week's disappointing employment report, which has reinforced expectations for the Federal Reserve to hold interest rates steady.
U.S. Treasury yields consolidated on Monday after a sharp rally late last week, as investors digest a surprise contraction in the labor market and turn their attention to upcoming inflation data.
The British pound and the euro gained against the U.S. dollar as markets continued to react to a surprisingly soft U.S. jobs report, reinforcing expectations that the Federal Reserve will hold interest rates steady.
German government bond yields consolidated near multi-week lows as investors balanced the implications of a surprise contraction in U.S. employment against inflationary pressures from rising crude oil prices.
The South Korean won fell on Monday, pressured by rising oil prices, while the Japanese yen gave back recent gains. The U.S. dollar edged higher as investors await key inflation data for clues on Federal Reserve policy.
A recent joint intervention by the U.S. and Japan to support the yen highlights the complex financial mechanics governments use, from deploying vast foreign reserves to utilizing Federal Reserve facilities, to influence currency markets.
Recent U.S. intervention to support the Japanese yen is poised to fail due to Japan's preference for a weak currency, a wide interest rate gap, and the indirect nature of the support, according to an analysis by Yardeni Research.
