Market News

Concerns over the political crisis that is escalating in Ukraine and worries that China’s economy might be on the verge of a major slowdown have resulted in an increased movement into safe haven currencies.

The Japanese Yen was range bound against its main rival the U.S. Dollar during Tuesday’s Asian trading session as FX players waited for the Bank of Japan’s policy setting committee to hand down their latest decision.

Safe haven demand once again pushed the Japanese Yen broadly higher after disappointing economic data out of China reinforced investors’ concerns that the Chinese economy, the second largest in the world, was on the verge of a slowdown.

The common currency Euro held close to Thursday’s 2-month peak versus its main rival, the U.S. Dollar, as FX players show their relief after Mario Draghi and the European Central Bank maintained the status quo on monetary policy.

In Asian trading today, the Euro was on the defensive as investors await the outcome of the European Central Bank’s monetary policy meeting later today.

The Japanese Yen steadied against its main adversary, the U.S. Dollar, despite heavy losses incurred on Tuesday as investors’ risk appetite improved following the easing of geopolitical tensions in Ukraine.

European stock markets posted sharp losses on Monday as tensions in Ukraine escalated over the weekend with the U.S. and its allies confronting Russia about its latest move to occupy the country.

Demand for safe haven assets has increased significantly, pushing the Japanese Yen higher as a geopolitical continues to escalate in Ukraine following the mobilization of troops to counter those sent in by the government of Russia.

The U.S. Dollar steadied during Friday’s Asian trading session against both the Japanese Yen and the common currency Euro as investors’ risk appetite improved and gave the greenback the lift it needed to recoup earlier losses.

With safe haven demand rising, the U.S. Dollar Index remained close to a 2-week peak as geopolitical tensions in the Ukraine escalate with Russia implying that they were militarily ready to intervene if necessary, an implication that the U.S. warned would be considered a “grave mistake.”

The Japanese Yen steadied during the Asian trading session today as FX players shunned the greenback in the wake of falling treasury yields as a result of unexpectedly bleak economic data from the United States.

The U.S. Dollar firmed versus its major peers during Tuesday’s Asian trading session even as FX traders await further evidence that the economic recovery remains on track and reaffirms that the Federal Reserve’s decision to taper is the appropriate one.

The Euro steadied versus its main rival, the U.S. Dollar, after experiencing volatility during the unrest in the Ukraine which eventually saw the president removed from office and a transformation of the government.

Better than expected labor data which showed that fewer Americans had filed for unemployment relief last week helped to lift the U.S. Dollar as investors consider that the way forward for the Federal Reserve’s tapering plans are more certain.

Demand for the safe haven Japanese Yen increased following the latest economic release out of China which showed that the preliminary factory output in February contracted for the second consecutive month, leaving investors wary that the emerging markets may be on a downward trend.