Analytics, News, and Forecasts for CFD Markets: currency news — 19-09-2012.

The yen fell to four-week low against the dollar after the Bank of Japan unexpectedly announced the expansion of the program of monetary stimulus to support growth and reduce the value of the currency.

The yen weakened against most of its 16 major counterparts after the central bank said it will increase the amount of asset purchase program, which is the main tool of monetary easing in the conditions close to zero interest rates, up to 80 trillion yen from 70 trillion yen and to extend its action for six months, until the end of 2013. Recall that

The euro continued its two-day decline against the dollar as market participants are waiting for data on the index of business activity in the manufacturing and services sectors, the euro area, which will be available tomorrow.

Australian dollar during the first half of the significantly higher against the dollar, which was caused by the publication of the index of leading indicators Westpac, which rose in July by 0.4%, compared with a gain of 0.5% last month. But the growth of the pair did not last long, and after optimism verse currency began to decline, losing much of the earnings position.

Swiss franc in early trading slightly stronger against the dollar, but published data on index of investor expectations according to Credit Suisse ZEW and were able to change the situation reversed. As it became known, the index fell more than many economists predicted that once led to the strengthening of the dollar.

EUR/USD: during the European session, the pair dropped sharply and is now trading in the minimum values ​​at $ 1.3000

GBP/USD: the pair reached the maximum values ​​of this week, but could not hold out and there has sharply declined, setting all-time low at $ 1.6200

USD/JPY: pair rose sharply, by setting high at Y79.22, followed by a correction, in which the rate fell to Y78.65

At 12:30 GMT the U.S. are data on the volume of building permits issued, the number of new foundations of bookmarks, the volume of sales in the secondary market in August. At the same time, the U.S. will publish a report on crude oil inventories from the Department of Energy in September. At 22:00 GMT New Zealand provide an index of economic confidence from Westpac for the 3rd quarter. At 23:50 GMT, Japan will announce the overall balance of trade in goods, the adjusted balance of trade in goods, changing the volume of exports of goods and changes in the volume of imports of goods for August.

The yen fell to a four-week low after the Bank of Japan joined the Federal Reserve in expanding monetary easing. The Japanese currency weakened against most of its 16 major counterparts after the BOJ said it will add 10 trillion yen ($127 billion) to its 45 trillion-yen fund that buys assets including government debt. Five of 21 analysts surveyed by Bloomberg News had predicted BOJ easing while 11 forecast the action by October. The move came after the Fed introduced purchases of $40 billion of mortgage debt a month on Sept. 13 in a third round of so- called quantitative easing.

Demand for the euro was limited ahead of a report tomorrow that economists say will show services and manufacturing industries shrank in the currency bloc for an eighth month. A euro-zone composite index for services and manufacturing industries was at 46.6 in September, little changed from 46.3 the prior month, according to the median estimate of economists surveyed by Bloomberg. London-based Markit Economics will release the figure that’s based on a poll of purchasing managers in the industries tomorrow. A reading below 50 indicates contraction.

Spain, the fourth-largest economy in the currency bloc, will auction 3- and 10-year securities tomorrow. The nation’s benchmark 10-year note yield has fallen to 5.9 percent from the euro-era record of 7.75 percent on July 25 since the European Central Bank unveiled an unlimited bond-purchase program on Sept. 6 aimed at lowering government borrowing costs.

EUR/USD: during the Asian session, the pair rose, departing from the previous day's low.

GBP/USD: during the Asian session, the pair rose to yesterday's high.

USD/JPY: during the Asian session, the pair rose above Y79.00.

There is a light European calendar Weds, starting with the UK BOE minutes from the September meeting at 0830GMT.