Yen Weaknes as Risk Aversion Fades on Eurozone Expectations

The Japanese yen fell against all of its major counterparts today, including the US dollar, as the optimism regarding the European debt troubles situation changed the risk-averting mood of the markets to positive.
While the current state of the FX market can be viewed as a simple technical correction, the optimism is also seen in other markets — European stocks are rising today. The yen fell against the pound for the second day and decreased against the greenback for the first day today. The most significant drops were registered against the “commodity dollars” — AUD, NZD and CAD — which are feeling great as the commodity markets are seen recovering.
The Greece situation is nearing its climax according to the market analysts. The German lawmakers will vote on the new programs for the $440-billion rescue fund for the Mediterranean country. And Prime Minister George Papandreou is meeting with Angela Merkel (Germany’s Chancellor) today to discuss the new aid program.
USD/JPY rose from 76.37 to 76.44 as of 12:26 GMT today. GBP/JPY advanced from 118.78 to 119.40, while NZD/JPY surged from 59.54 to 60.25 today.

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