Japanese yen continues to gain ground today, thanks in part to the positive GDP data released earlier this week. Without expectations of further Bank of Japan cuts, the yen is doing well against its major counterparts.
Earlier this week, Japan revised its third quarter GDP reading to 1.0 per cent year over year, which exceed expectations of 0.1 per cent. The expansion of the economy by 0.3 per cent in the third quarter was also better than expected.
With this good news, expectations for more cuts to the deposit rate by the Bank of Japan have been reduced. With better news on the economy, BOJ Governor Haruhiko Kuroda sees no need for negative rates, although the asset purchase program is still in force.
Also helping the yen right now is the continued situation with oil prices. OPEC nations will maintain output, despite some discontent from some of the members. As a result, some Forex traders are turning to the yen due to its position as a safe haven currency.
At 14:50 GMT USD/JPY is lower, dropping to 121.3620 from the open at 121.4150. EUR/JPY is also lower today, falling to 133.0610 from the open at 133.7840. GBP/JPY is also down on the day, dropping to 184.1250 from the open at 184.3070.
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