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Yen Attempts to Rebound After Being Worst Performer on Friday

June 5, 2020 at 9:34 by Vladimir Vyun

1,000 yenThe Japanese yen was the worst performer on the Forex market today as the positive sentiment favored riskier currencies, not safer ones. Currently, though, the yen has trimmed its losses, even managing to gain on another safe-haven currency — the Swiss franc.

Japan released a couple of macroeconomic reports over the trading session. The Statistic Bureau of Japan reported that household spending dropped 11.1% in April compared with the same month of the previous year. While the decline accelerated from 6.0% registered in the previous month, the actual reading was not as bad as a slump of 12.8% expected by market participants.

According to a report from the Cabinet Office, the leading index fell to 76.2% in April from 85.1% in March. The reading was in line with market expectations.

Now, traders wait for US nonfarm payrolls that will be released in several hours. Analysts predicted ahead of the release that it will show a drop of 7,750,000 in May. While a huge fall by itself, it is nowhere near as big as the slump of 20,537,000 logged in April. It is possible that the report will be even better considering that the private employment data from Automatic Data Processing provided a very positive surprise on Wednesday. If that is the case, the yen will likely decline amid a surge of risk appetite.

USD/JPY rose from 109.13 to 109.42 intraday but has backed off to 109.23 by 9:33 GMT today. EUR/JPY traded at 123.65 after opening at 123.71 and rising to the daily high of 124.43. CHF/JPY retreated from 114.20 to 114.03 following the earlier rally to 114.59.

If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

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