By: DailyForex.com
The Japanese Yen retreated from a 3-year peak versus the common currency Euro as sentiment improved following the broad stabilization of the world’s equity markets. Analysts say that the overall improvement was helped by the Chinese central bank which yesterday fixed the Yuan which calmed market jitters. Similarly, the Chinese government appears to be tackling the growth and currency problems head on with some measures aimed at increasing bank lending. Analysts point out that with both monetary and fiscal policies finally aligned that could go a long way toward improving growth in China.
As reported at 10:41 am (GMT) in London, the EUR/JPY was trading at 123.1185 Yen, up 0.60% for the Euro. Meanwhile, the USD/JPY was 0.66% higher at 113.1900 Yen. Risk-related currencies were also improved with the AUD/USD trading at $0.7148, a gain of 0.13% while the NZD/USD was trading higher at $0.6604, up 0.03%.
PMI Data Mixed Globally
For some, the measures from China’s government and central bank couldn’t come at a better time. The latest economic data, specifically PMI releases, points to further contraction. That has kept hopes alive that the Peoples Bank of China will release additional stimulus. PMI releases were also delivered for the European Union with France falling short of expectations and Germany edging higher to a reading of 50.5 against expectations of 50.2. The European Union as a whole received a PMI reading of 51.2 against the consensus figure of 51.0.