Safe haven currencies retreated, especially the Japanese Yen, during trade in Asia, as a result of an improved trade outlook between the two largest economies, namely the U.S. and China. Numerous indications that global growth is staging a recovery are also helping to boost interest and investor sentiment in risk-related currencies. On Wednesday, the Beijing government reported that they are working with the Trump administration to stage a signing ceremony for the latest trade deal. Analysts say that while it is not yet a done deal, the rhetoric from both camps is enough to boost optimism for a favorable conclusion.
In very light trading given the Boxing Day holiday across much of the globe, as of 11:17 am in London, the USD/JPY was trading higher at 109.550 Yen, a gain of 0.1582%; the pair is off the recorded high for the session at 109.577 Yen. The EUR/JPY is also up at 121.43 Yen, up 0.0874%, while the GBP/JPY is at 142.007 Yen, a gain of 0.1149%.
A Look at Today's Data
Financial markets in the U.S. Are open today, and FX traders will be watching for the release of labor data from the U.S. Department of Labor. Initial jobless claims for the week ended December 20th are expected to have declined, with new applications for benefits also likely to show a slight fall. Then, later today, markets will turn back to Asia for inflation data from Japan. Analysts are predicting that annualized CPI (excluding fresh food) for December will be flat at 0.6%.