Even though markets are somewhat cautious about next week’s risk events, some of that is fading as risk appetite returns — at least for today. The yen, which had the upper hand in earlier trading, is heading lower now as Forex traders look for higher yields.
Yen is pulling back against the euro and the UK pound right now, heading lower as Forex traders turn to high beta currencies for yield. Markets in the United States are surging as traders take advantage of a shortened trading day.
Even though there are concerns about the US fiscal cliff, and what will happen next in Greece, those are worries for next week. Today, it’s about yield. Yen is still maintaining some gains against the US dollar right now, although some of the greenback’s losses are being pared.
Yen will have trouble asserting strength, even if risk aversion does become a factor in the markets, since unlimited easing from the Bank of Japan is seen as a very real possibility in the near future. With those expectations, it’s hard for the yen to head higher for a substantial period of time.
At 15:13 GMT USD/JPY is a little lower at 82.4300, down from the open at 82.4805. EUR/JPY is up to 106.7115 from the open at 106.2700. GBP/JPY is up to 131.7825 from the open at 131.4850.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.
Be First to Comment