Japanese yen is surging against its major counterparts today, thanks to renewed concerns about what’s next for the eurozone. Lackluster US earnings aren’t helping much, either. As a result, the yen is in high demand, as one of the most stable currencies right now.
Yen is in demand today as Forex traders look for safe haven. Additionally, yen has the advantage of being one of the higher yielding majors right now. With the dollar and the pound at low rates, and since the ECB recently implemented a 0% rate, the yen’s yield is looking pretty good, on top of being stable.
Concerns about what’s next for the eurozone is the big issue today, though. Spanish bond yields continue to rise, even with the approval of a bailout package for the country’s ailing banks. Jitters are driving out risk appetite, and replacing it with fear. On top of that, earnings in the United States continue to show that major companies are struggling with revenue growth right now. GE and Microsoft earnings, while not horrible, still underscore continued problems in the global economy.
It’s no surprise that the Japanese yen is in demand, with news like that.
At 14:57 GMT USD/JPY is down to 78.5490 from the open at 78.5925. EUR/JPY is down to 95.5100 from the open at 96.5150. GBP/JPY is down to 122.7635 from the open at 123.5850.
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