FOREX-Yen slides to five-week lows as risky bets thrive By Reuters

© Reuters. FOREX-Yen slides to five-week lows as risky bets thrive

* Graphic: World FX rates in 2019

By Saikat Chatterjee

LONDON, Sept 10 (Reuters) – The Japanese yen fell to a five-week low against the U.S. dollar on Tuesday as a rebound in government bond yields prompted some investors to cut back on bearish bets on the global economy.

Germany’s 30-year bond yield rose into positive territory for the first time in more than a month. Benchmark U.S. Treasury yields rose to three-week highs as investors ventured into riskier assets.

“What we are seeing now is a reversal of some of those investment flows in the summer,” said Lee Hardman, a currency strategist at MUFG in London.

Against the dollar , the yen fell to a five-week low of 107.50 yen, its weakest since early August.

Recent data has lifted some of the gloom over the global economy. Citi’s economic-surprise indices for the United States turned positive in the past week for the first time since February. The UK equivalent turned positive for the first time since June. The G10 aggregate index is on the cusp of flipping into the black and is at its highest in a year

“Over the past 24 hours there has been a move towards more risk-friendly, pro-growth currencies,” Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.

The euro was flat at $1.104. It reached an overnight high of $1.1067 after a Reuters report that Germany may set up public-investment agencies to boost fiscal stimulus without breaching national spending rules Swedish crown SEK=D3 was the only notable loser in early London trading, falling 0.5% versus the dollar and 0.7% against the euro, after August inflation data came in below market expectations.

Sterling was steady GBP=D3 as Britain’s parliament voted to block Prime Minister Boris Johnson’s bid for an early election, which pushed him to promise he would secure a Brexit deal at a European Union summit next month.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Spread the love