After taking a pounding last week against the US Dollar, the Japanese Yen regained some of its positive momentum though investors are certain to refocus their attention on the upcoming Bank of Japan policy meeting. The consensus call is for the BOJ to offer even more easing in an effort to keep the Yen from appreciating further. Analysts say that the markets’ faith in the Dollar has been deteriorating with few expectations that the Federal Reserve will live up to its earlier promise to raise interest rates several times this year. Many believe that the inherent shakiness of the global economy will leave the Fed with little choice but to push back any hope of a rate hike in the near future.
As reported at 10:38 am (BST) in London, the USD/JPY pair was trading at 111.2965 Yen, down 0.47%; in today’s trade, the pair has ranged from a low of 111.0300 Yen to a peak of 111.7275 Yen. The EUR/JPY is also lower at 125.1903 Yen, down 0.25% with a daily range of 124.82 Yen to 125.4335 Yen.
Sterling Momentum Fading After Obama Comments
In the UK, the Pound Sterling is taking a breather from its earlier surge. Earlier in the session, the Pound had been trading close to a 10 month peak versus the greenback and the Euro after President Obama issued a warning against the possible exit from the European Union. The latest polls, in fact, suggested that more Britons appear to be in favor of Britain remaining within the EU. The GBP/USD pair was trading at $1.4423, down 0.23% and moving away from the pair’s daily peak at $1.4461. The EUR/GBP was 0.49% higher at 0.7799 Pence. According to Obama, if Britain pulled out of the EU potential trade deals with the US would likely fall through.