FX.co ★ Fundamental analysis for February 18, 2013

Today the floor trading in New York is closed due to Presidents Day.
The yen fell after G-20 refrained from criticizing Japanese policies driving the decline. The Japanese currency has tumbled 13% against the US dollar in the past three months as the Prime Minister Shinzo Abe announced spending increases and pressed the bank of Japan to boost monetary easing.
The market reaction was a new low for the Yen, which is close to 94.45, a value that touched on February 11, which is the lowest since May 5, 2010. Overcoming 95 per dollar, it will reach the lowest level since August 2008.

The euro has not presented significant movements so far and it seems it is in the 1.33/1.3370 equilibrium zone, which no doubt will extend during the course of the week. But it shows the dissatisfaction of many European business leaders with the single currency above 1.30 against the dollar, which stifles value export opportunities in countries with greater financial difficulties. Of course, the U.S. does not complain of this.

The pound fell to a 7-month low vs. the dollar and is approaching 1.5315 after Bank of England policy maker Martin Weale said its decline may help bolster exports. In the short term the currency is oversold.