The Japanese yen climbed on Monday against all 16 of its major rivals amid growing concerns for the stability of Ukraine as Russian troops streamed into Crimea, prompting demand for safe-haven assets to climb, according to Bloomberg.
The yen surged near month-highs against the world's reserve currency as Russian President Vladimir Putin received parliamentary permission to send troops into the region located south of Russia.
"The one to watch in our opinion is dollar yen given the overall increase in political risk and the evidence of a slowdown in China," strategist Ian Stannard with Morgan Stanley in London told Reuters on Monday. "If risk does become more challenged there is room for a lot more movement there. We favor a shift to as low as 97 yen per dollar."
The yen climbed roughly 0.4 percent against the U.S. dollar and about 0.6 percent against the shared currency of the European Union.
The yen was set to continue its upward drive against the greenback as the worldwide focus on Ukraine sharpened and China released data noting a factory slowdown last month, according to Reuters.
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.