Risk aversion is dominating markets right now, but that isn’t keeping the yen from heading lower today. Instead of getting a boost as a safe haven currency, the Japanese yen remains lower against other majors this morning. It’s been an interesting day so far for the yen, as traders try to find their places.
Right now, risk aversion is high as lack of fresh and positive data leads investors to take profits and consider what might be next. Also contributing to the atmosphere of risk aversion is the fact that there are worries about Chinese demand. With time for reflection on the state of the Chinese economy, many Forex traders and investors are concerned that demand for commodities could weaken. This is also sending equities lower and boosting demand for the US dollar.
Normally, this state of affairs would also mean a higher yen. The yen is seen as a stable currency, and one that traders can turn to during times of turmoil. However, the yen remains lower against other major currencies today, even though the news and the data indicate that the yen should be in demand. It will be interesting to see what happens next.
At 13:20 GMT USD/JPY is higher at 83.7350, up from the open at 83.4020. EUR/JPY is up to 110.4965 from the open at 110.4000. GBP/JPY is up to 132.7660 from the open at 132.5300.
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