The Japanese yen edged off its 5-year low versus the common currency Euro as well as a 6-month trough against the greenback though analysts say that the investors are still wary ahead of a week filled with market moving events. Market players believe that the Yen’s downtrend is likely to continue as expectations grow that the already ultra loose policy will gain momentum with more stimulus being added in 2014; add to that, say analysts, the strong probability that this year’s end is likely to be one dull in comparison with no need for investors to take a safe haven flight.
As reported at 12:18 p.m. (JST) in Tokyo, the USD/JPY eased back 0.1% to trade at 102.25 Yen, moving away from this week’s peak of 103.38 Yen. The EUR/JPY slipped even further to 138.89 Yen, a loss of 0.2%, but remaining close to Tuesday’s 5-year peak. The USD/CAD was trading at a session low of C$1.0708 earlier, before edging back to C$1.0675; yesterday the Bank of Canada maintained its current policy and interest rates though its outlook took a more dovish leaning.
All Eyes on ECB
Today, markets will focus primarily on the European Central Bank’s policy meeting, and to a lesser extent the Bank of England’s; the ECB is not expected to introduce any policy changes at this time, but market players will be keenly observant to hear Mario Draghi’s speech afterward to gauge the ECB’s likely intentions. The EUR/USD was flat at $1.3589, still trading within this week’s range of $1.3524 and $1.3616.