Japanese yen is mostly lower today, weakening as the Chinese rate cut announced recently causes Forex traders to consider what’s next.
The yen is weakening again, thanks in large part to the interest rate news out of China. Officials have announced a rate cut, and there is a meeting to create China’s budget and release a new economic growth forecast coming up. There is a great deal of speculation about what this could mean, and the yen is mostly lower against its major counterparts as a result.
However, the news isn’t unwelcome for Japanese policymakers. Prime Minister Shinzo Abe hopes that his policies will kickstart the Japanese economy, and a weaker yen should help in those efforts. Indeed, the weaker yen has resulted in higher stocks in Japan already, with the Nikkei and Topix both heading higher.
There is a lot of economic news from around the world expected this week, and that could make for volatility in the Forex market. There will be a lot to digest, from China and the United States, in coming days.
At 13:24 GMT USD/JPY is higher, gaining to 119.7940 from the open at 119.7750. EUR/JPY is up to 134.4840 from the open at 133.8500. GBP/JPY is the only major pair including the yen that is falling right now, dropping to 184.3030 from the open at 184.7450.
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