Japanese yen is higher today as Forex traders and investors move into wait and see mode with regard to economic data and concerns about what’s next for the global economy. Also helping the yen today is a round of short-covering.
Forex traders are waiting for data from the United States related to construction spending and manufacturing. Additionally, Forex traders have had the weekend to digest the latest European developments and try to decide what they think. It’s a new week and a new month, and today could set the tone.
In Japan, the tankan survey, which measures business sentiment, proved a disappointment. While this might mean more easing in an effort to boost the economy, toward the end of last week Bank of Japan officials and other Japanese leaders conceded that inflation did need to be kept in mind.
It’s an interesting time right now, but the real boost to the yen today is all the short-covering going on. So far, it has contributed a great deal to the yen’s gains against its major counterparts.
At 13:22 GMT USD/JPY is heading lower, dropping to 93.6900 from the open at 94.2800. EUR/JPY is also lower, down to 120.0855 from the opent at 120.7350. GBP/JPY is down to 142.4700 from the open at 143.2500.
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