Currency markets were calmer today as risk sentiment picked up after Monday’s turmoil which led to large declines in risk currencies and gold and pushed the safe haven yen up.
Yen weakness resumed today, while euro rebounded to a near two-month high above $1.31. Gold moved off a two-year low hit yesterday when the metal plunged the most in a day in over twenty years.
Monday’s risk aversion was triggered by weak growth data from China, the world’s second largest economy.
The yen sank 0.8 percent against the dollar, to push USDJPY to up to a high of 98.14 before ending the day flat close to European levels around 97.58 yen.
Euro gained 2 percent against the yen to 128.99 yen after jumping 3.5 percent during the previous two days.
Against the dollar, the euro gained over 1 percent to hit a high of $1.3200, the highest level since February 25. Investors shrugged off data showing a sharp decline in the German ZEW investor sentiment data for April.
Gold moved off two-year lows to gain back $40 today, hitting as high as $1,403 before steadying at around $1,365.
Currency markets were calmer today as risk sentiment picked up after Monday’s turmoil which led to large declines in risk currencies and gold and pushed the safe haven yen up.
Yen weakness resumed today, while euro rebounded to a near two-month high above $1.31. Gold moved off a two-year low hit yesterday when the metal plunged the most in a day in over twenty years.
Monday’s risk aversion was triggered by weak growth data from China, the world’s second largest economy.
The yen sank 0.8 percent against the dollar, to push USDJPY to up to a high of 98.14 before ending the day flat close to European levels around 97.58 yen.
Euro gained 2 percent against the yen to 128.99 yen after jumping 3.5 percent during the previous two days.
Against the dollar, the euro gained over 1 percent to hit a high of $1.3200, the highest level since February 25. Investors shrugged off data showing a sharp decline in the German ZEW investor sentiment data for April.
Gold moved off two-year lows to gain back $40 today, hitting as high as $1,403 before steadying at around $1,365.
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