Risk aversion is back, and that is weighing on high beta currencies while giving safe haven currencies, like the yen, a boost. Indeed, Japanese yen is higher today as Forex traders and other think about last week’s policy decisions and economic data.
Concerns about the US employment situation are weighing, as are down performances for world stocks. Additionally, there are concerns about how well the eurozone will be able to do going forward and disappointments about what’s happening in the United Kingdom. With all of this uncertainty, many traders are looking to the yen for stability.
Japan’s account surplus shrank to a record low in 2013, and that news isn’t helping the currency much, since it indicates continued issues with the recovery from the Fukushima disaster. However, for now the yen is higher. Japanese officials might decide to take steps to weaken the yen in coming weeks, but for now the yen is strong on demand for safe haven as uncertainty continues to wrack the world.
At 14:21 GMT USD/JPY is down to 102.2000 from the open at 102.4980. EUR/JPY is also lower, dropping to 139.3435 from the open at 139.5140. GBP/JPY has lost ground, falling to 167.6460 from the open at 168.0850. CAD/JPY is also down, dropping to 92.4720 from the open at 92.8630.
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