The Euro Recovers While The Yen Is Still Strong

The Euro Recovers While The Yen Is Still Strong

The German ZEW survey exceeded expectations and was partly to blame for the increase the euro had against the dollar this Tuesday.

The euro wasn't the only currency that was strong as the yen was also rated high against the dollar after the measures the Bank of Japan took to decrease the yen didn't deliver as expected.

The euro dropped at first as did the DAX on rumors that Bafin, asked a couple of banks to prepare a scenario that involved the separation of retail and investment activities.

The situation was, however, helped by the Center For European Economic Research or ZEW’s report that showed business confidence jumped from 6.9 back in December to no less than 21.5 in January, the biggest numbers since May 2010 and much more than the expected 12.0.

The yen was also strong versus the dollar, even though the Bank of Japan said it was going for a 2 percent inflation rate, and said they will continue to buy assets until that target is achieved.

The results the Japanese Bank fell short as investors weren't impressed with the scale of the asset purchases and with the fact that they will not start until 2014.

U.S. futures predicted a flat open for Wall Street, where investors are going to keep an eye on more than the euro numbers but also on home sales figures, Google and IBM earnings.

Posted by James Fried on Wednesday January 23 2013, 3:22 AM EST. Ref: The Wall Street Journal. Link. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0