Yen Set To Gain In The Volatile Market
By Anatol Thomas
The Asian trade had been quite for a while as the stocks declined.
The demand for the Japanese Yen has reduced drastically as the USD continues to strengthen. The French election has also provided considerable support for Euro. As the major currencies strengthen, investors lose their interest in anti-risk currency like yen. Surprisingly, on Friday, Japanese Yen performed better than other currencies in the market.
Despite the current support for Euro, the currency remained unchanged after the release of the German GDP report. The report showed that the GDP was just according to the expectations. However, ECB is not willing to make drastic changes to the current monetary policy and the release of the new economic data is not going to change the situation again.
The US economic data is not also going to bring about a change in the market. The fed rate hike for June has been priced in at 100%. This means that any new economic data is not likely to affect the market conditions considerably. The S&P 500 future contracts have been on the negative side during the European trading hours.
All these have supported Yen to gain the offensive movement in the market at the end of the week. The Japanese stocks gained about 4.3% in the month of April. With no important political or economic data to be released anytime soon, both EUR and USD will remain steady in the market. For a short period, it is not surprising for Yen to gain some attention.
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