JPY Daily News

Yen Strengthens Against the Euro and the Pound on Increased Risk Aversion

The yen appreciated against most of the major currencies during last week's trading session. The yen gained about 450 pips against the euro, and about 350 pips against the British pound. Against the U.S. dollar the yen saw a volatile session without a clear trend.

The yen rose significantly last week, as disappointing data from the U.S. economy increased concerns that global recovery may take longer than expected. In addition, negative reports from the Japanese economy also contributed to the uncertainty in the market. The Japanese Current Account, which measures the difference between imported and exported goods and services rose to 1.36T, yet failed to reach expectations for 1.44T. In addition, the Core Machinery Orders rose by 1.6% in June, well below expectations for a 5.6% rise.
It currently seems that for as long that data from Japan, the U.S. and the euro-zone will indicate that global economic recovery might be halted, the yen, as safe-haven, is likely to strengthen as a result.

Looking ahead to this week, traders are advised to follow the major economic publications from Japan, the U.S. and the euro-zone, and to take under consideration that positive data might increase risk appetite, and as a result erase the yen's gains from the past week.

Current Time: 05/27 05:26 GMT

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