By: Barbara Zigah
Profit taking in Asian trading has pushed the Japanese Yen down from multi-month highs, which had been hit in overnight trading, versus the single currency Euro and the U.S. Dollar. But according to analysts, the Yen’s prospects in the near term are bright, as many investors consider it among the safest currencies during periods of economic turmoil which should spur buying, given that the optimism over the global economy’s health appears to be waning.
As reported at 2:52 p.m. (JST) in Tokyo, on the EBS platform, the Yen had traded at 93.52 Yen versus the U.S. Dollar; in late Wednesday trading in New York, it had briefly touched on 92.66 Yen. The Euro also moved up on the Yen, climbing to 130.03 Yen in Tokyo, off of a 2-month low of 127.00 Yen in New York trading yesterday.
Market trading is somewhat subdued this week as investors and speculators await the release of 2nd quarter earnings reports from major U.S. financial institutions and other key corporations; those reports are expected to be released some time next week. Dealers are also looking forward to the reading on U.S. consumer inflation and retail sales data next week. Data from the U.S. Labor Department is, however, expected to be released later today, and analysts believe that it will show that first-time unemployment claims in the United States declined from 614,000 two weeks ago to 610,000 last week.
Japanese Yen Slips versus Euro/USD on Profit Taking
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.