Japanese Yen Down

last updated on

Japanese Yen Down

Japanese Yen (Jpy) Down By 0.3%

Japanese yen (JPY) is down by 0.3% against the US dollar, which is the first intraday loss of this month. Similarly, the Swiss Franc (CHF) is down for the day, which shows that market players now prefer risk-on assets.

Right now, the USD/JPY is trading at 144.75 with +0.3% change for the day. This is a sign of the dollar rebound and highlights that the USD/JPY is now going through an intraday correction.

Nikkei Gains 10% In A Day

If we look at the equity markets such as Nikkei, it is almost up by 10% today. A day earlier, the stock index lost 12% which means it has almost recovered. Similarly, the European shares are also trading higher today, which shows that the sentiment has improved.

According to Monex Europe's analyst, it seems that the market went a bit ahead and excessively sold everything. Now, they have realized it and are buying Dollars and other riskier assets once again.

The recent gains in the Japanese Yen (JPY) were mostly driven by an increase in volatility as many traders closed their carry trades.

The US market is also going through a lot of volatility right now due to the expected emergency rate cut. Many traders believe that the US Federal Reserve now has no choice but to lower the rate due to the emergency economic situation.

As of now, there is a forecast of a 110 bps rate cut from the US Federal Reserve. As for the upcoming September rate cut, many are citing a number around 50 bps.

This has led to an interesting development for the USD/JPY. The US Dollar, which was once the dominant currency in the pair, is now on the back foot, as evidenced by consistent selling in the last few weeks. Conversely, the Japanese Yen is now on the offensive after being fueled by the BoJ's rate hikes.

Trending Stories