The yen is expected to weaken on foreign exchange trading markets over the remaining four months of the year, with experts claiming it will lose ground steadily against the dollar.

Currently standing at a 15-year high against the US currency, Forex specialists forecast the Asian money will drop against the dollar, but note the Bank of Japan's (BoJ) efforts to dampen its rapid appreciation have not been as successful as it was hoped.

Reuters reports Forex spreads will show the Japanese currency rising at a much slower rate than previously thought.

However, the predictions are still the strongest seen since January 2008, indicating the yen may not retreat too much before the end of 2010.

Last week measures to restrict its rise appeared to be working and confidence returned to the Japanese market, but it seems they have not been effective enough, as it continues to outpace rival currencies.  

Currency trading may be touched by China's vast foreign currency reserves, as one national bank executive has warned they are at risk of depreciation due to swings in monetary value.

Hu Xiaolian, a deputy-governor of the People's Bank of China and former director of the State Administration of Foreign Exchange, is one of the first officials to admit having such a large amount of foreign currency might cause problems in the future.

She observed: "Once a reserve currency's value becomes unstable, there will be quite large depreciation risks for assets."

Forex accounts might wobble if the country decides to release some of its stockpile – which many experts estimate to consist of around two-thirds US dollars, 26 per cent euros, five per cent sterling and three per cent yen.

Selling off large amounts of dollars might cause currency traders to devalue the money, leading to big losses for the Asian tiger, which has around $2.45 trillion (£1.59 trillion) in its coffers.  

Stock brokers in Asia have traded cautiously during today's (September 1st) session, as they anticipate the release of US job market data due this afternoon.

The MSCI Asian stock index outside Japan added just 0.3 per cent, with CFD brokers reluctant to make big moves before potentially downbeat figures from the jobs market, Reuters reports.

Describing the mood as "sombre", it revealed the Nikkei 225 performed better, adding 0.6 per cent to its value and continuing appreciation from earlier in the week, when successful moves to curb the rise of the yen brought a measure of confidence to traders.

However, the Japanese trading platform is still down 13 per cent on the year, which may be dampening stock broker appetite for risk-taking strategies.

Daisuke Karakama, market economist at Mizuho Corporate Bank, remarked: "Market players have been building up positions for some time to brace for a weak US recovery. Any upside surprise in the payrolls data could move the market." 

Bullish or Bearish how healthy is the US

Bullish economic data throughout the week pushes for positive Payrolls numbers

Currency buying and selling platforms have seen a one-fifth expansion of business in the past three years, a new report has revealed.

Reuters reports the Bank for International Settlements found increased demand for Forex trading was driven by a number of factors, including the expansion of hedge funds and other non-bank financial institutions.

Online Forex exchanges may also have benefited, as conventional spot transactions – widely used to give an up-to-date image of currency trading – leapt 48 per cent over the period in question.

Alan Bozian, chief executive officer of FX settlement system CLS Bank told the publication: "Forex remains a very fertile environment and the number of participants and the number of types of participants has grown."

This could mean Forex trading in middle-eastern financial markets has also improved, as commodity trading in the area expands and creates demand for business and leisure travel.

Experts say the next week might prove good for the dollar, as speculators seek safe investments due to caution ahead of key US financial data releases.  

Stock brokers might have welcomed yesterday's (September 1st) news Malaysian petroleum company PETRONAS is to purchase assets from BP.

The energy group, which operates globally and deals in oil and gas, has agreed to buy interests in ethylene and polyethylene located in Kertih on the east coast of Malaysia.

Wholly government owned, the firm paid BP $363 million (£235.85 million) in cash at the close of the markets yesterday, which included a balance sheet adjustment and the repayment of a $53 million shareholder loan.

But CFD brokers may have responded negatively, with PETRONAS shares falling to a little over 376 pence each, indicating speculators are not convinced of the profitability of the news.

However the firm rallied later in the day, to break a high point of more than 390 pence, before closing the share trading session around 388 pence.

Sue Rataj, president of BP's global petrochemicals business, called the interests "attractive", but stated PETRONAS is their natural owner.   

Stock brokers might find emerging markets – such as those in South Africa and Asia – are an attractive option for future investment, as the MSCI Emerging Markets Index is valued at 14.1 times reported profits and 1.9 times net assets.

Bloomberg reports the global economic downturn was felt less keenly in developing nations, which are now trading at the highest valuations relative to advanced-country shares in more than two years.

Some online brokers may have noted the stocks were outperforming those of countries such as Japan and the US, suggesting individual speculators and those working on behalf on investors could find such indices increasingly tempting.

Philip Poole, the London-based global head of macro and investment strategy at HSBC Global, observed: "The fundamentals have changed," adding: "There is a case for a re-rating of emerging markets relative to the developed world."

The FIFA World Cup recently drew attention to South Africa, which enjoyed a significant publicity and revenue boost on the back of global interest in the tournament. 

Stock broker confidence in Japanese markets might have been improved following the news measures to halt the rise of the yen have been successful.

The Nikkei 225 added 1.2 per cent to its value, rebounding from a 16-month low observed yesterday as share traders exited the market, disappointed with earlier failures to stem currency appreciation, Reuters reports

Positive data from other countries also helped buoy CFD broker risk appetite, as Australia reported strong-than-expected growth, while nearby China exhibited a manufacturing rebound that also spurred the market on.

Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities, opined: "The main catalysts for stock gains are signs of a halt in the yen's rapid advance and the solid performance in other Asian stocks."

The share trading expert suggested comments from political heavyweight Ichiro Ozawa on yen-control measures probably also had some positive influence on CFD trader sentiment. 

Currency trading may be affected by the proposal of Ichiro Ozawa, a contender for leadership of the ruling party in Japan, who said he would implement measures to prevent rapid appreciation of the yen.

Those who engage in online Forex trading might become more risk averse if it was suspected measures to control the Japanese currency would impact upon its value in world markets.

However, rapid expansion of the Asian money can be challenging for export companies, whose goods become less competitive globally as the nation's currency continues to rise.

Steps taken to rein in the yen have been successful earlier this week, resulting in a 1.2 per cent gain on the Nikkei 225 index, as CFD brokers and others gained confidence from the stabilising currency, as well as good financial data emerging from Australia and China, Reuters reported.

Ozawa will go head to head with prime minister Naoto Kan on September 14th in a fight for leadership, as voted for by members of the party. 

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The current rally in the price of gold is set to continue as regardless of whether the economic recovery is successful, analysts have suggested.

Bloomberg reports many experts believe the present increase – which is the longest for over nine decades – will not be ending soon.

Gold has proved popular during CFD trading and Eugen Weinberg of Commerzbank was quoted by the news agency as saying "either a swift economic recovery or further dismal economic performance should bring new buyers into the market".

The metal was priced at $1,237 (£802.20) per ounce by 17:30 BST in London yesterday (August 30th) and the median of a 29-person survey conducted by the news agency indicated analysts see the precious metal's price rising as high as $1,500 per ounce during 2011.

Gold is traditionally seen as a safe haven in times of economic instability and so has been popular with traders during the global financial crisis.

Sterling has declined against the dollar during trading this morning (August 31st) amid worries regarding the strength of the global economic recovery.

Reuters reports the British currency was down 0.3 per cent against its US counterpart on Forex trading platforms by 08:49 BST, taking it to $1.5413 and putting it below the 200-day moving average of $1.5440.

Worries about the worldwide economic outlook prompted investors to stay away from riskier currencies and some traders may be influenced by figures due to be released today by the Bank of England, which are expected to show another dip in the rate of mortgage approvals.

"Today sterling is likely to be driven by slight risk aversion and month-end flows," Royal Bank of Scotland currency strategist Paul Robson was quoted by the news agency as saying, adding: "We are seeing the dollar rise against most currencies."

Last week, the greenback rallied after chairman of the Federal Reserve Ben Bernanke said the institution is prepared to take more steps to stimulate economic growth in the US.

Strong growth in the construction sector helped the UK's economy grow by more than expected during the second quarter of the year.

New figures from the Office for National Statistics (ONS) have revealed growth of 1.2 per cent took place in the three months to the end of June.

This was 0.1 percentage point higher than the body's initial estimate and the upward revision may have been welcomed by UK investors operating on trading platforms.

"The upward revision is certainly an encouraging sign that the UK economy is moving further away from a dip back into recession," remarked Duncan Higgins of Caxton FX.

However, chief economist at the Institute of Directors Graeme Leach said traders "shouldn't get carried away" following the increase.

He observed it would be better to "keep our eyes on the road" rather than concentrating on what has already happened and warned it is unlikely similar levels of growth will be seen during the second half of 2010.

The economic recovery in the US has slowed by more than expected, the country's Federal Reserve chairman has warned.

Speaking at a news conference, Ben Bernanke said the Fed is willing to take further steps to stimulate growth in the country, noting purchases of long-term securities by the central bank have been an effective way of bringing down borrowing costs, while raising inflation targets or holding interest rates at low levels are likely to have less success.

"The committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly," he said at the event.

Those operating on Forex trading platforms saw the value of the pound drop to a day-low against the dollar following Mr Bernanke's comments.

Reuters reports sterling fell to $1.5444 against the greenback, which rallied against most of its global counterparts after the Fed leader said more measures would be implemented if necessary.