The Japanese yen was falling yesterday against some majors, including the euro and the pound, but slowed its decline today. Against the yen, on the other hand, the greenback continued to decline.
There was no major news at the beginning of this week, so the Forex market was largely digesting the events of the last week. Good US non-farm payrolls sapped the strength of the US currency. Yet the mood of traders remained largely foul after the Federal Reserve’s suggestion that quantitative easing may end this year, providing support for the dollar.
The rally of yen against other most traded currencies, including the greenback, was a real surprise. The cause of such advance is not yet clear and perhaps it is just a bounce after the huge decline that has started since the end of September.
EUR/USD rose from 1.3115 to 1.3135 and GBP/USD traded flat at 1.6113 as of 2:31 GMT today. USD/JPY declined from 87.77 to 87.22 before trading at 87.65.
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