The Japanese Yen has reached 7 week highs in forex-trading against the Euro and the British Pound. Risk aversion on the Yen has risen amidst over declining stock markets, a slowing U.S. economy and also unrest over Iran's nuclear programme. The Japanese Yen improvement was also due to unexpected data revealing a rise in household spending, breaking 12 months of decline. Unemployment figures are at 4 percent, which is currently its lowest level in about nine years. ''We still do not believe that current risk aversion would lead to huge unwind of yen carry trades resulting in a significant yen appreciation eventually and believe that recent yen strength has been mainly driven by position squaring by short-term players,'' JP Morgan said in a research note.
In forex-trading, the Euro fell to a low of 154.50 Yen and the British Pound fell to 229.29 Yen. The Japanese Yen is on its way for its largest weekly gain against the Euro since June, 2005.
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