The yen is this week’s best bet among traders, as speculations that a weak U.S. corporate earnings to be posted this week made Japanese investors to sell overseas assets and repatriate their capital to the Asian nation.
After negative news last week that brought risk aversion up in world markets, this Tuesday events provided support for the yen to gain even further, as pessimist statements in the U.K., regarding the countries financial sector health, and speculations that U.S. corporate earnings will be weaker than previously expected spurred attractiveness for the yen’s safety profile, making Japanese investors to repatriate their capital an bringing traders that were opting to higher-yielding assets to purchase yen priced ones, in order to protect their options from bearish market days.
GBP/JPY fell to 152.85 as of 20:47 GMT from a previous rate of 155.25.
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