Asian Session – Yen gains on safe haven demand in nervous markets
August 27, 2013 6:17 am
The Asian session Tuesday was quiet because there were no economic data releases. Major currency pairs drifted while the yen gained ground due to safe haven flows.
The Japanese currency is perceived as a safe asset and tends to strengthen during periods of financial turmoil because Japan isn’t reliant on foreign capital to fund its deficits.
There is some nervousness in the markets recently as investors focus on Fed tapering.
Meanwhile recent geopolitical issues are also making markets jittery as tensions over Syria are escalating as the U.S. Secretary of State John Kerry said on Monday that President Obama will hold Syria’s government accountable for using chemical weapons.
USDJPY fell to a low of 98.02 yen, compared to yesterday’s high of 98.83 yen. EURJPY dropped to 131.04, down from yesterday’s high of 132.30 yen.
The euro was supported ahead of data forecast to show continued improvement in Germany’s business climate. Germany is Europe’s largest economy and so the data will be closely watched.
Germany’s Ifo business confidence is forecast to rise in August for a fourth month to 107.0 from 106.2 in July.
EURUSD hovered above $1.3365 in a tight range in Asia today.
GBPUSD has been flat since Friday and remains unchanged due to a bank holiday on Monday, trading around $1.5570.
The Australian dollar slid versus its major counterparts as volatility headed for the highest close in six weeks, damping demand for the risky aussie.
AUDUSD tumbled to as low as $0.8944, losing over 80 pips in the Asian session.
The Asian session Tuesday was quiet because there were no economic data releases. Major currency pairs drifted while the yen gained ground due to safe haven flows.
The Japanese currency is perceived as a safe asset and tends to strengthen during periods of financial turmoil because Japan isn’t reliant on foreign capital to fund its deficits.
There is some nervousness in the markets recently as investors focus on Fed tapering.
Meanwhile recent geopolitical issues are also making markets jittery as tensions over Syria are escalating as the U.S. Secretary of State John Kerry said on Monday that President Obama will hold Syria’s government accountable for using chemical weapons.
USDJPY fell to a low of 98.02 yen, compared to yesterday’s high of 98.83 yen. EURJPY dropped to 131.04, down from yesterday’s high of 132.30 yen.
The euro was supported ahead of data forecast to show continued improvement in Germany’s business climate. Germany is Europe’s largest economy and so the data will be closely watched.
Germany’s Ifo business confidence is forecast to rise in August for a fourth month to 107.0 from 106.2 in July.
EURUSD hovered above $1.3365 in a tight range in Asia today.
GBPUSD has been flat since Friday and remains unchanged due to a bank holiday on Monday, trading around $1.5570.
The Australian dollar slid versus its major counterparts as volatility headed for the highest close in six weeks, damping demand for the risky aussie.
AUDUSD tumbled to as low as $0.8944, losing over 80 pips in the Asian session.
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