Japanese Yen exchange rate. The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades where traders borrow cheaply in JPY to buy higher-yielding currencies, including EUR. Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress.
The pair may likewise find volatility in news-flow related to the Eurozone debt crisis as well the extraordinary anti-deflation policy efforts from the Bank of Japan introduced in Coming off of a string of much stronger than expected Euro-Zone PMI data, the Euro has few obstacles in its way on the calendar to continue its push higher.
Or, read more articles on DailyFX. An error occurred submitting your form. Please try again later. Upcoming Events Economic Event. Forex Economic Calendar A:More...