The Euro continues to underperform despite the recent demand as a carry trade currency. Against the Japanese Yen, the common currency Euro fell to its lowest level in a fortnight, with a similar outcome against the safe haven Swiss Franc. In general, safe haven demand has been whetted as worries over the Eurozone’s banking system grows and on the backs of disappointing economic data from Germany. Germany is viewed as the economic driver for the Eurozone and any weakness there tends to migrate to the overall EU economy.
As reported at 10:34 am (GMT) in London, in volatile trade, the EUR/JPY was trading lower at 129.23 Yen, a decline of 0.16%; the pair has ranged from 128.2762 Yen to 129.5110 in today’s trading session. The EUR/CHF was trading lower at 1.1001 Swiss Francs, a loss of 0.49% for the Euro.
BOJ’s Efforts Failing
The Japanese Yen has been the currency star of the day’s trading session having been pushed higher as global uncertain escalates. That is despite the Bank of Japan’s aggressive efforts to keep the Yen’s value suppressed in an effort to get the Japanese economy growing. Since the beginning of the month, the Yen has gained about 6% versus the US Dollar. Analysts don’t have high expectations that the BOJ’s efforts to devalue the Yen will have any significant impact on demand for it, so long as the jitters in the global equity markets remain. The USD/JPY pair was trading down 0.15% at 115.4250 Yen.
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