Daily Report: Yen Retreats Further, Dollar in Range as Investors Calmed Down

Action Insight Written by ActionForex.com Aug 20 07 07:50 GMT
The forex market is generally quiet as the week starts. Strong rebound is seen in Asian stock markets which is triggered by Fed's surprise discount rate cut last Friday. Yen crosses continues to rebound further but dollar majors continue to stuck in tight range only. As discussed before, the massive carry trade unwinding is not considered to be completed yet. Fed's discount rate cut, and even Fed Fund rate cut, could halt the current liquidation of riskier assets but the trend will likely continue. But still, with a light economic calendar, and probably support from further rebound in the stock markets, Forex markets will likely continue to consolidate today and this week first.
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