Uncertainty is once again taking hold of the markets, and Forex traders are looking for a safe haven. As a result, it is little surprise that the Japanese yen is surging higher today.
Safe haven demand is driving the Japanese yen higher today, resulting in gains against major counterparts. Uncertainty surrounding key regions in the world is resulting in increased demand for the yen.
Right now, there are worries about the weaker than expected PMI data in the eurozone, as well as concerns about the political crisis brewing in Portugal. With the periphery once again a source of worry about the eurozone, bond yields are on the rise and the euro is struggling.
Yen is also getting help from the situation in the Middle East. Protests in Egypt have prompted the powerful military to tell President Mohammed Morsi to resolve the unrest â or face the consequences. Clashes between protesters and protesters, as well as clashes between protesters and authorities, have many worried about the stability of Egypt, and the rest of the Middle East.
With so much concern, it is no wonder that Forex traders are ignoring the easing efforts of the Bank of Japan and choosing the yen as a safe haven.
At 13:39 GMT USD/JPY is down to 99.6280 from the open at 100.6330. EUR/JPY is down to 129.2700 from the open at 130.6100. GBP/JPY is down to 152.1620 from the open at 152.4990.
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