The Japanese yen, an ever-increasing safe haven compared to Europe’s turbulent waters, is performing well against its major peers. The Japanese economy faces some discouraging data out tomorrow, with month-on-month and year-on-year retail trade data expected. Year-on-year it is expected to move from -0.8% to -1.6%, but this is almost insignificant when considering the severity of data coming out of Europe and the States.
Japanese officials have attempted to reduce the yen’s strength, without direct intervention. However, with the significance of the China’s trade links with the wobbling EU, the knock-on effect to Japan could be of a greater magnitude than anything the Bank of Japan can mitigate, resulting in a continued trend of yen strength.
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