On Thursday we saw the Japanese yen strengthen in response to a downward curb in the Japanese stock market. Historically, when Japanese stocks perform badly, traders look to buy in to the yen, with its safe-haven reputation. The developing geopolitical uncertainty in Ukraine provided further support for the yen, and similarly the Swiss franc (another safe haven currency) showed strength.
Looking forward to this week, tomorrow promises to be an interesting day, with a New Zealand interest rate decision, as well as Canadian retail sales data, and Australian inflation figures being released. We also have the release of the Manufacturing Purchasing Manager Index for China which will be very closely scrutinized following the recent disappointing growth figures for China.
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