Japanese yen is gaining against its major counterparts today, rising as Forex traders seek some sort of safe haven and stability in the wake of the latest news out of China. Concerns about global growth are very real, and yen is also getting a boost as concerns about the economic growth in other regions are in doubt.
The main driver behind a higher yen is the latest news out of China. Wen Jiabao, the Chinese Premier, said that the growth target for China had been lowered. Instead of aiming at 8 percent, which has been the norm since 2004, China has lowered the target for 2012 to 7.5 percent. This news has rattled many who expect China to lead the global economy out of its current funk.
Also helping the Japanese yen is economic news from other world regions. Against the euro, the yen has the upper hand because the Greek drama isn’t completely played out. There are concerns about the ability of Greece to complete its bond exchanges by this week’s deadline. Plus, there are still questions about some of the other eurozone countries, and issues with economic growth in Germany. In the United States, mixed economic data is a factor. Many Forex traders and investors are still looking for direction.
At 15:27 GMT EUR/JPY is down to 107.4925 from the open at 107.8850. USD/JPY is lower at 81.4125, down from the open at 81.7785. GBP/JPY is lower at 129.0495, down from the open at 129.5250.
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