Yen Goes Down as European Manufacturing & Services Improve
The Japanese yen declined today after positive data about European manufacturing and service industries reduced demand for safety of Japan’s currency.
The flash eurozone manufacturing PMI rose from 46.9 to 48.7 and the flash eurozone services PMI advanced from 48.8 to 50.5 in January from December. German manufacturing and services, as well as French services, also expanded, while French manufacturing declined. Losses of the yen versus the euro were limited as a disagreement between Greece and bondholders about reduction of interest rates on the nation’s debt reignited fears of crisis in Europe.
USD/JPY was up from 77.03 to 77.28 as of 12:17 GMT today. EUR/JPY traded at 100.54, up from the opening rate of 100.24 and following the advance to the daily maximum of 100.83.
If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
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EUR/JPY, Eurozone, France, Germany, Greece, Japan, Manufacturing, PMI, Service Industries, USD/JPY, Yen
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Earlier News About the Japanese Yen:
- Japanese Yen Mixed as Uncertainty Creeps In (2012-01-20)
- Spain & Greece Successfully Sell Debt, EUR/JPY Advances, USD/JPY Down (2012-01-18)
- Yen Fluctuates Ahead of US Reports, Looks Down (2012-01-13)
- Japanese Yen Gains Against Euro, Pound (2012-01-11)
- JPY Drops vs. EUR (2012-01-10)
2 Comments
I would like to know in details why Yen is affected negatively for a positive result of PMI in Europe?
Improving situation in Europe (or elsewhere) decrease global risk-aversion, which in turn decreases attractiveness of the so called safe haven currencies. And Japanese yen is one of such currencies.