The Japanese yen gained against the euro and other currencies on the Forex market today, making this week the first bullish one since May, as the stock markets declined world-wide spurring sell-off on the carry trade market.
Stock markets declined yesterday in the United States and Europe and continued to fall in Asia today. Such financial environment is considered to be very unattractive for the Forex carry trades, but it proves to be beneficial for the Japanese yen.
The euro is a distinct loser among the major currencies against the yen this week. While other currencies managed to show at least two days of growth against JPY during the last 5 days, euro rose only on Monday and its gain was minimal.
The Japanese yen gains not only from the decline in carry trade popularity but also from the weakness of the euro and other currencies. Recent economical reports from the Eurozone showed that while there is still some room for the rate increase, the consumer and business climates are worsening there.
EUR/JPY declined from 168.38 to 167.76 as of 8:10 GMT today with a weekly drop started from 169.41 — the first bearish week since May 4-8. USD/JPY went down from 107.38 to 106.92 today; GBP/JPY decreased from 213.29 to 212.49 with a daily low at 211.58.
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