How do falling oil prices affect the Japanese Yen on the forex market?
My forex trading assignment for today is to find out how falling oil prices affect the Japanese Yen. Since I am focussing my trading on the EURJPY crosses it will be useful for me to know this information. I did find an article from 2005 titled How do oil prices affect currency prices?
According to that article falling oil prices would be a good thing for the YEN but I would have to conclude that falling oil prices would not impact on the YEN in such a way to have any relevance in forex per se.
But I’ll have to pose the question to a few experts to get a more qualified answer. If falling prices benefit the YEN, then rising prices would obviously hurt it, and I can see rising oil prices degrading the value of the YEN in the forex market. But I can’t see falling oil prices having much of any effect on the value of the YEN in the forex market, at least in relation to stronger currencies.
But again, I am not well enough versed in this subject for my thoughts to be considered anything more than someone in the middle of learning and trying to figure it all out. I’ll keep digging and append any other useful resources I find that provide more reliable answers to the question of how oil prices whether rising or falling affect the Japanese Yen and other currencies.
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