Push for Japanese Yen Continuing
The JPY edged higher during the Asian trading session, aided along by yet another drop in the price of oil. Market watchers are of the belief that the shivers that are being felt in the market are largely driven by eroding stance in the commodities market, driven largely by oil, with growing supplies and dropping demand from the second largest economy in the world, china the chief drivers of market fears.
The Australian Dollar is experiencing stress after the statement from the Reserve Bank of Australia took a distinctly dovish turn with the likelihood of easing going into the future.
The USD/JPY was trading lower at 120.7650 Yen as shown during the London session at 10:43 am (BST), a 0.20 percent. Down 0.79 percent at $0.7050 is the AUD/USD, with the pair ranging between $0.7038 at the trough to $0.7129 at the peak.
The EUR/USD on the other hand was up 0.16 percent, inching higher to 1.0908. Monday saw the ECB pointing to a possible additional easing to fuel the quiet Eurozone economy. The Euro is benefiting from surging demand not minding its deteriorated state, due to the fact that it is usually used in carry trade transactions.
Furthermore, Mario Draghi noted that there’s a slim degree of improvement for developed economies, and this is not as much in emerging economies. Draghi reiterated that the ECB would have to do its share for the recovery in the Eurozone to remain on track.