An economic report showed that the Chinese economy had the slowest growth in almost a decade, this favored the yen against high-yielding currencies.
Several factors pushed the yen up today against major currencies, it rose against the U.S. dollar on speculations that reports will show weakened numbers from the construction sector, combined with an increase for unemployment benefits claims. A report from the European Union to be released today is believed to hit a record low in the industrial production, and after the OECD announcement indicating that the New Zealand should lower its interest rates, the yen managed to attract traders that were opting, until that moment, for higher-yielding assets.
The rise of the yen was backed by weak numbers from the Chinese economy, which at the present levels, will make the unemployment unlikely to ameliorate, according to analysts. Even if, for the moment, several weak reports and unsatisfactory events worldwide are bringing investors to the safety of the yen, for some analysts, the long-term trend for the Japanese currency is bearish, based on the — yet to be proven — idea, that the worst moments of the global slump are already in the past.
In the intraday chart comparison, the USD/JPY was traded at 99.25 from 98.45. The EUR/JPY was traded at 131.05 from 130.45. The same movement was perceived with the NZD/JPY, rising from 56.95 to 57.55.
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