USD surged: USD/JPY highest in 6-year

US dollar set a new highest record in six-year's script over Japanese Yen (JPY) on Wednesday, with Australian dollar (AUD) recording another session bulked with a big box of losses over rise in US treasury yields.

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Forex traders are summing over the risk of trading in US currency trading coming out of US interest rate rise. Investors are reallocating their investments to USDs following Federal Reserve's report in the current weak citing higher determined recovery hiking the price of currency hitting new targets everyday.

With statements and publications from Fed, US treasury yields climbed up close to two year's highest heading to break three-year's highest record of 0.590 percent. High security long-term yielding US treasury rose more than 2.50 percent recovering from its recent fall at 2.30 percent rate. In Asian markets, it traded at 2.505 on Wednesday in early session.

USD backed up with positive cues from US treasury yields branded its value higher against most of the major currencies in the market. USD/JPY expanded to 106.56 breaking its six-year's highest record.

"Trader who did not hold their dollar stock lost out on big gains which will continue as Japanese yields fall further in near future," a forex researcher quoted from a renowned company in Tokyo.

Asian currencies fell against dollars and so did Australian dollar ratio with US dollar. AUD/USD lowered 0.4 percent down trading at 0.9162 in the market range today. Though, the ratio is posting a slim drop at 0.4 percent, in the overview of forex trade market AUD/USD gained momentum from its previous close at 0.9154.

Among domestic cues, Australian dollar commenced a climbing trend but paused on highest record gains in US. Australian forex expert said, "The trading level of AUD/USD broke its normal closing at 0.9175 as per estimates."

Similarly, European markets reported lower over gains in USD. EUR/USD plunged 14 months gains coming back to 1.2859 losing 0.1 percent from its last closing at 1.2925.

UK markets fought back US currency recovering from its disappointing beat down from the news of Scotland's independence. GBP/USD moved a notch up at 0.1 percent coming to 1.6115 coming back from its lifetime low at 1.6060 recorded yesterday.

GBP/USD lowers despite low US job data

GBP and USD

United Kingdom and United States exchange rates in Forex markets moved up as sterling shone in GBP/USD pair, as USD slid with disappointing US job report published over the weekend.

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The gain in forex market fell back as political concerns in Scotland plunged the gain to record 10-months lowest rate of GBP/USD of 1.6165 falling over a percent in early trade on Monday. The fall kept the outlook of the pair bearish in the market as GBP/USD recorded last lowest on 26 November 2013 at 1.6222 dipping 0.7 percent.

Great British Pound shed its gains after vote for independence of Scotland resulted in favor of the move. Sterling is likely face more in the coming 10 days till September 18 when final decision on Scottish independence is framing out.

Against the most popular forex Asian currency, sterling dropped to its three-months lowest record reporting at 169.68 yen (GBP/JPY), after which it settled between the levels hitting highest at 170.41 yen.

On technical charts, sterling is trading in between $1.6000 and $1.6100 marked as long-term support levels according to 100-week and 200-week moving averages against USD.

European benchmark currency, Euro is trading under pressure after ECB's decision of bringing down interest rates after last Thursday's meeting. EUR/USD tripped down to 1.2950 nearing its 14-months' lowest record at 1.2920.

Australian dollar worked its way up in early trade as its stabilized markets cued up with falling USD on the back of unexpected lowered US job data. AUS/USD climbed 0.1 percent coming at 0.9369, with a stronger result of 0.9403 posted on last Friday's closing breaking its previous record set in July.

NEWS to watch for in the coming week

Tuesday, September 9
The U.K. will publish data on industrial and manufacturing production along with a report accumulated on the data of trade balances. Another highlight of the day is coming from BoE Governor Mark Carney who will share his views in Manchester, USA.

Wednesday, September 10
BoE Governor Mark Carney with other monetary policy committee members will check up the reports of inflation and present the report highlighting economic outlook to the Parliament’s Treasury committee members.

Thursday, September 11
The U.S. will post its first weekly report commenting on its initial jobless claims.

Friday, September 12
U.S. will publish data on retail sales, accumulated by the government on the basis of measurement of consumer spending, which forms majority of overall economic activity. Another important report coming into picture is primary reports presenting consumer buying sentiments.