Another major factor leading to such movement is the continual stance of the Bank of Japan regarding monetary ease. Yen selling might even be the favorite trade option for the investors around the globe as there is no scope wherein Bank of Japan may tighten its knuckles regarding the monetary policy. On the contrary, it is expected that the policies might even be relieved further to tackle the never ending deflation. Bank of Japan is buying $66.8 billion of government bonds every month to somehow reach inflation target of 2%.
The news has been yet another add-in to US recovery bulletin. In the year where S&P 500 gained 21%, there have been other thriving factors which have been fundamental in surprising the world. The fact that people filing for unemployment benefits fell by 42000 to 338,000 in US has given a great push to the labor market.
US President Barack Obama has said that 2014 will be a breakthrough year for US economy. “We head into next year with an economy that’s stronger than it was when we started the year [and] more Americans are finding work and experiencing the pride of a paycheck,” he said.