After several days driven by risk appetite globally favoring high-yielding currencies and forcing commodities rates up, the rally was halted as China affirmed that the economic recovery is uneven, raising concerns among safeties and attracting them to the safety of the Japanese currency.
The Japanese currency beat almost all of 16 main traded currencies in foreign-exchange markets today after the Chinese Premier Wen Jiabao made rather negative statements regarding the ways the global economic recovery is following, which was more than enough to halt a rally that started in the beginning of the week and decreased attractiveness for refuge currencies like the U.S. dollar and the Japanese yen. The only currency that managed to gain versus the yen this Thursday was the Australian dollar after the South Pacific nation, against most forecasts, added jobs in the previous month providing support for the Aussie to maintain its position of second best performing currency in 2009.
Analysts point that not only Chinese Premier’s comments influenced markets today, as it can be understood that after 3 days of strong bullish patterns, a number of traders would be repatriating their profits, which causes a corrective movements for the yen which has been losing during the past months when risk appetite is strong.
EUR/JPY traded at 134.19 as of 11:54 GMT from a previous rate of 135.35 in the intraday. GBP/JPY traded at 148.79 from 149.52.
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