Forex News

Markets Respond to Abe’s Victory

Spread the love

Japanese Prime Minister Shinzo Abe secured a two-thirds “super-majority” on Sunday, calling for 312 out of 465 possible places.

Abe’s victory essentially ensures that his easy-money policy (called Abenomics) to continue to be, a prospect of the to the dollar to a three-month high against the yen.

Had the dollar gain on Friday after the U.S. Senate approved a budget plan for the year 2018 fiscal year, a task that was a big challenge for the Republicans so far. The dollar hit as high as 114.10 yen on Monday morning, the highest since July 11, before retreating. It is trading at 113.69 yen as of 1:55 PM HK/SIN to increase by 0.17 percent.

The currency markets were also pressured by the continuation of the political struggle in Europe, which led to the common currency lower on Monday, on the heels of a 0.6 percent slide on Friday. The euro was down 0.10 percent against the dollar, trading at $1.1775. The euro has recently been under pressure, as traders hope the European Central Bank to implement radical militaristic policy. The next ECB meeting will take place next Thursday.

The stock markets React to the election

Before the election, Japan’s Nikkei 225 index gains straight sessions written for 14. It was up 1.16 percent on Monday after the election, the results were in. The other Asian markets were largely higher on Monday, with South Korea’s Kospi publication of a modest 0.02 percent and the Shanghai Composite 0.11 percent rise. Australia’s ASX 200 was down, easing to 0.22 percent, while Hong Kong’s Hang Seng Index erased from 0.67 percent to property, gaming and oil fell shares.