Japanese yen is mixed today, heading higher against the euro, but lower against the US dollar and the UK pound. Uncertainty about Greece is creeping into the picture, weighing on the euro, but there is enough good news — so far — that other high beta currencies are maintaining their gains.
Yen is gaining against the euro as worries about what happens to talks about Greek debt creeps into the picture. Risk appetite is slowly fading away as investors and Forex traders worry that a deal regarding Greek debt may not go through. Additionally, investors are also weighing the latest earnings data, which isn’t as good as expected.
However, there is enough good news about the US economy that some risk appetite is hanging on, as evidenced by some high beta currencies, such as the UK pound, retaining some of their gains.
In Japan, some business leaders are asking that the policy makers add a cap to the Japanese yen. The Swiss put a cap on their currency in 2011, and businesses in Japan are concerned about what happens if the yen appreciates too far and interferes with their exports. A franc-style cap on the yen might prevent that.
At 14:30 GMT USD/JPY is higher at 77.1805, up from the open at 77.1095. EUR/JPY is lower at 99.6650, down from the open at 100.0150. GBP/JPY is higher at 119.7550, up from the open at 119.4350.
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