Positive Market Sentiment Hurts Appeal of Yen

The Japanese yen found a limited demand from investors today as they were in a relatively positive mood, reducing the appeal of safe currencies. Japan’s trade deficit widened but, as it often happens, domestic macroeconomic data had a small impact on the currency.
Japan’s trade balance logged a deficit of Â¥0.13 trillion in July, up from Â¥0.03 trillion in June. It was in line with analysts’ forecasts of a Â¥0.15 trillion gap.
The People’s Bank of China announced a reform on interest rates that should reduce funding costs for companies. Some analysts argued that the reform could be considered for all intents and purposes an interest rate cut, effectively lowering borrowing costs. Markets welcomed the news, and risk appetite sprang among investors.
USD/JPY gained from 106.28 to 106.56 as of 12:19 GMT today. EUR/JPY advanced from 117.74 to 118.31. AUD/JPY edged up from 72.00 to 72.21.

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