Risk aversion continues to be a theme in the markets today, and the Japanese yen is moving higher as a result. Even with the latest mixed data out of Japan, the yen is heading higher against its counterparts as stocks struggle and as concerns about the eurozone once again come to the fore.
Yesterday’s Japanese data was mixed, with Core Machinery Orders dropping a hefty 19.5 per cent, while the Corporate Goods Price Index gained to 4.6 per cent. There are still a lot of issues with Japan’s economy, but the yen is still considered a stable safe haven, and there is a lot of uncertainty floating around just now.
Stocks are struggling today around the world. While some European indexes are eking out gains, stocks in Asia and the United States struggle. Risk aversion is also coming as a result of more trouble in the eurozone. The latest news out of Portugal is once again highlighting the differences between periphery countries and the rest of the eurozone and causing a few ripples. It’s not surprising, then, that the yen is higher.
At 13:52 GMT USD/JPY is down to 101.2815 from the open at 101.3430. EUR/JPY is down to 137.8000 from the open at 137.9125. GBP/JPY is down to 173.3680 from the open at 173.6200.
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