Economic Recovery Makes Safety Unnecessary, Yen Struggles

The Japanese yen weakened on the previous trading session as the signs of the global economy recovery removed demand for the currency as a safe haven. The yen attempts to regain its strengths at the beginning of today’s session.

Analysts forecast that the report of Automatic Data Processing, Inc. will show tomorrow that the non-farm employment in the US increased by 206,000 this month. The jobless claims are expected to decline from 382,000 to 379,000. Europe also has potential to provide some good data. Forecasts suggest that the report today about the consumer spending in France will show growth by 0.6 percent. The retail sales in Germany advanced by 0.4 percent, according to estimates, while the number of unemployed persons should decrease by 23,000.

According to CME Group Inc., the bets that the Federal Reserve will raise the interest rates at the beginning of the next year rose to 52 percent from the last week’s 41 percent. It looks like whole world is recovering, except Japan that was heavily hit by a disaster, and the nation’s currency is suffering because of that.

USD/JPY traded at 81.60 as of 00:55 GMT today after it rose yesterday from 81.40 to 81.72. EUR/JPY traded at about 114.94, following the jump from 114.39 to 115.08. GBP/JPY traded near 130.52 after it went up on the previous trading session from 130.33. to 130.69.

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