Japanese yen is turning mostly lower today, slipping as risk appetite makes an appearance and favors high beta currencies. Earlier, the yen saw some gains on concerns about the global economy, as well as uncertainty about Europe. Now, though, a bit of optimism has returned to the markets, and the yen is heading lower as high beta currencies see some demand.
Eurozone PMI data continues to show a slump, indicating recession. The worries about global slowdown, and about what’s next in Europe, helped the yen earlier. Yen gained on safe haven demand, but since the release of economic data, the focus has shifted. Now, there is optimism as Forex traders look forward to tomorrow’s ECB announcement from Mario Draghi.
There are hopes that Draghi will announce a program that shifts money around, without increasing the eurozone money supply. This hope is helping keep the euro strong, and reducing the need for safe haven currencies like the Japanese yen. Additionally, some in Japan are calling for more easing to stimulate the economy. This would have a further weakening effect on the yen, and send the currency even lower relative to other majors.
At 14:46 GMT USD/JPY is down to 78.3910 from the open at 778.4350. EUR/JPY is up to 98.7100 from the open at 98.5640. GBP/JPY is up to 124.6750 from the open at 124.4450.
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