Euro Goes Down, Yen Strengthens as Stocks Pared Gains
The euro fell for the first time since May 7 against the U.S. dollar, while the Japanese yen rose against all other major currencies, as the European stock markets failed to demonstrate a commitment to move farther up.
The traders witnessed Europe’s stock market indexes mostly in the red zone and expected a negative opening from Wall Street when they began to sell the euro and other high-yielding currencies in order to buy the U.S. dollar and the Japanese yen. The Eurozone currency corrected significantly after one of the highest daily gains demonstrated on Friday. The Japanese yen grew against all other popular currencies, except the South Korean won.
Analysts point out the consolidation of the recent weeks’ bullish trend in the stocks, commodities and other more risky than safe assets. While there is no strong confidence in the continuation of the growth, investors prefer to wait holding the «safe haven» currencies, such as Japanese yen, for example. But overall optimism for the growing markets isn’t gone and the current correction should probably be regarded as that, a short- or medium-term correction.
EUR/USD fell from 1.3654 to 1.3579 as of 12:39 GMT today, while EUR/JPY slid down from 134.73 to 132.95; EUR/GBP rose insignificantly from 0.8963 to 0.8982. USD/JPY declined from 98.67 to 97.87 (touching as low as 97.58 earlier) and GBP/JPY declined from 150.28 to 147.30.
If you want to comment on the euro’s recent action or have any questions regarding this currency, please, feel free to reply below.
Earlier News About the Japanese Yen:
- Yen Strengthens as U.S. Banking Funds Concerns Arise (2009-05-06)
- Global Slump Ending Speculations Weaken Yen (2009-05-04)
- Yen Weakens on U.S. Economy Recovery Speculations (2009-05-01)
- Yen Rallies Against Euro On Swine Flu Concerns (2009-04-28)
- Spreading Swine Flu Pushes Yen Up (2009-04-27)
May 11th, 2009 at 2:45 pm
Hello
When do you think the market will stop reacting like this crisis mode right now ( safe heaven currencies going up when bad news hit ) ? What will mark the change when bad news in the US will mean the EUR/USD goes up and not the other way around ?
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Andrei Moraru Reply:
May 11th, 2009 at 2:48 pm
When the financial crisis is over and forgotten. In a year or even more, I believe.
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