The Japanese yen on Wednesday surged against the world's reserve currency and the common currency of the European Union, marking its highest climb in almost two months, Bloomberg reports.
The currency of the Pacific Rim nation also climbed against the remainder of its major counterparts. Its advance against the euro was roughly 1.3 percent and 1.5 percent against the greenback.
"It's all part of a general flight-to-safety trade – investors are liquidating positions in riskier assets," currency strategist Lee Hardman with Bank of Tokyo-Mitsubishi UFJ Ltd. in London told Bloomberg on Wednesday. "Currencies such as the yen are the funding currencies over the last year or so, but that's ultimately leading to short positions being pared. That's encouraging a stronger yen in the near term."
Deputy governor Kikuo Iwata with the Bank of Japan said on Wednesday that the central bank is supporting the establishment of an inflation goal of 2 percent as soon as possible, with a goal of doing so within 24 months, Reuters reports.
He told business leaders during a speech in Kyoto that monetary easing policies will continue, Reuters reports.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.