The Japanese yen is currently positioned as the locomotive of growth on the Forex market as the global economic slowdown takes its toll, keeping the traders and investors away from the risk-ridden high-yielding currencies.
Despite the great problems with the economic situation in the home countries of the so called «safe haven» currencies, the traders expectations for the deepening of the recession in all the parts of the world leads them to buying the Japanese yen and the U.S. dollar, while selling the euro and the pound. Today, investors expect that the Eurozones CPI estimate report for January will show a slowdown to the lowest rate in the last seven years.
Avoiding the risks that are usually associated with the high interest rates is the general trend that the investors and traders are currently following. Analysts believe that for as long as we keep getting more bad news than good ones from the developed economies that trend simply cant change and the yen will continue to gain on the currency market.
USD/JPY fell from 90.02 to 89.37 as of 9:04 GMT today. EUR/JPY declined from 116.48 to 114.98, while GBP/JPY went down from 128.59 to 127.52 today.
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