LONDON: Yen powers away on morning trades as investors find entry positions in a weak and feeble euro markets after recent weeks poor macro report. The EUR, GBP and USD, all opened lower from Friday’s trading session as these currencies were seen as riskier haven. The one that has suffered the most ‘bloody nose’ today is the pound sterling, GBP. What is causing this move when whole of Japan is having a Bank Holiday?
Yen Powers Away
Amid the craze of the market mayhem this morning the Yen shows strength against the Euro. For example, the euro yen, EURJPY quickly accelerated downward this morning in spite of a healthy German economic reports as shown on the chart opening further wounds on the euro-zone economy. Still weighing on the euro, EUR is the uncertainty of Greece meeting their set goals.
The pound sterling, GBP, could not be isolated from the south-bound train. Sterling, GBP, related currencies came of worse this morning as the pound fell from a one-week high against the dollar and 150 pips against the yen on Monday trades as markets perceived these majors riskier currency. This outlook is most likely to persists as assets held in the UK are facing more pressure with a dour UK economic outlook likely to keep expansion subdued in the near term.
Finally, as the yen powers away, pounding all other main currencies, it is worth mentioning that the Japanese market is having a holiday today. In spite of the holiday, the yen, JPY found it range against all major currencies in the overnight trades. This effect from the pacific and Asian session continued to affect the London trading sessions as we have not seen a while. How far will this fall could go is unknown. Please share your thoughts…
