Drive For Japanese Yen Ongoing

The Japanese Yen inched higher during the Asian trading session, helped along by yet another decline in the price of oil which weighed on sentiment in risk appetite. Analysts feel that today’s market jitters are driven largely by the eroding outlook in the commodities market, specifically oil, with rising stockpiles and declining demand from China the primary drivers of market worries. The Aussie Dollar was also under pressure after the announcement from the Reserve Bank of Australia took a decidedly dovish turn with the possibility of more easing ahead.

As reported at 10:43 am (GMT) in London, the USD/JPY pair was trading lower at 120.7650 Yen, a decline of 0.20%. The AUD/USD was down 0.79% at $0.7050; the pair has ranged from $0.7038 at the low end to $0.7129 at the top end.

Euro Pushed Higher by Carry Trade Demand

In the Eurozone, the EUR/USD edged higher to 1.0908, up 0.16%. Yesterday, the European Central Bank indicated that it was considering more easing to stimulate the stagnant EU economy. The Euro, which is often used in carry trade transactions, is benefiting from increased demand despite its weakened state. Mario Draghi said that the outlook for developed economies is improving only to a slight degree, and it is less so in emerging markets. In order to ensure that the EU recovery remains on track, Draghi said the ECB would do its part.