The safe-haven asset from the land of the rising sun steals the spotlight after the BOJ governor gave his speech. The Japanese yen exchange rate dips this Thursday’s trading sessions as trade war prospects get clearer.
Aside from trade war optimism, the improving sentiment around the global economic growth is also pushing the yen lower.
The Japanese yen contract plunged 0.27% or 0.000025 points this Thursday. The yen is on its back foot and it didn’t stand a chance against the currencies despite the quiet market.
The greenback to yen exchange rate rose 0.19% or 0.21 points in sessions. The pair currently exchange for ¥109.56 as bulls take advantage of the trade agreement euphoria.
The EUR JPY trading pair also went up by 0.19% or 0.23 points today, exchanging for ¥121.49.
Meanwhile, the pound to yen exchange rate rallied even higher by 0.44% or 0.63 points this Thursday.
Then, the nearby currencies from Australia and New Zealand also climbed higher. The AUD JPY rose by 0.36% and the NZY JPY hiked 0.47%.
What’s Weighing on the Yen?
Today, headlines in the market remain silent, with most focusing on recaps and outlooks. But amid all the silence, trade war related news continues to be relevant.
Both parties are nearing their promised deadline, which is in early January. This means trouble for the yen exchange rate, it’s safe-haven appeal could fade once that happens.
On Tuesday, US President Donald Trump confirmed that Washington and Beijing will have an official signing ceremony soon.
The protracted trade war between the two economic giants has moved the entire market this 2019. It didn’t only affect the yen exchange rate, it also affected other currencies, commodities, and stocks.
Now, as the situation starts to ease, experts are starting to raise their global growth forecasts for next year. Which could be beneficial for the Japanese economy but could also hurt the yen.