Geopolitical Risks Hike Demand for Yen

The Japanese Yen was broadly higher during trading in Europe today as the geopolitical risks escalate with the possibility of more action by the United States in Syria, and now also in North Korea. The French presidential election is also weighing on the Euro, with some contenders earlier considered out of the race, experiencing renewed popularity according to the latest polls. It appears a 4-way contest is now in the works in France, with leftist and conservative candidates regaining previously lost ground. It is expected, nonetheless, that the centrist candidate, Emmanuel Macron, and Marine Le Pen, the far right candidate, are likely to take the lead in the first election which takes place on April 23rd.

As reported at 10:54 am (BST) in London, the EUR/JPY was trading at 117.332 Yen, a loss of 0.14%; the pair earlier hit a trough of 117.174 Yen, while the session peak was set at 117.344 Yen. The USD/JPY was also lower at 110.64 Yen, down 0.19%, moving off the session low of 110.425 Yen.

Market Moving Events Ahead

In a week shortened in most markets by the Good Friday holiday, possibly market moving fundamental reports will be coming out beginning tomorrow with a speech from the Bank of England Governor Mark Carney. The Bank of Canada will also be releasing its monetary policy on statement on Wednesday, with forecasters predicting no change to the current policy. With the financial markets open on Friday in the US, key reports include the March retail sales figures and consumer inflation reports.

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.