Japanese Yen Soars as Investors Seek Safety

Japanese Yen Soars as Investors Seek Safety


The Japanese Yen strengthened against other major currencies as investors rushed to safety amid growing fears of a global economic slowdown. The soft economic data from the Eurozone on Friday fueled investors' demand for the currency. The Japanese yen is well-known as the investor's safe haven during times of high market risks and uncertainties. The USDJPY dropped to a six-week low of 109.70, and the EURJPY tumbled to a two-month low of 123.82.


The euro weakened against peers following sluggish PMI data from the Eurozone. The German Manufacturing PMI dropped to 44.7 in March, the weakest since 2012. The current economic data signals that the European Central Bank could be forced to apply additional easing measures to support the economy. Market participants await further economic data from Germany today which could lift investors' woes. The EURUSD tumbled to a low of $1.1270, and the EURNZD plunged to a fifteen-week low of 1.6368.


Major US stock indices futures extended losses amid growing global growth concerns. Moreover, the yield curve inversion fueled investors’ fears. The spread between the 3-month T-bill yield and the 10-year note turned negative for the first time since 2007. The Dow Jones Industrial Average futures fell to a two-week low of 25356, the S&P500 futures traded at a low of 2792, and the Nasdaq futures declined to a low of 7266.


Gold edged higher amid growing market risks and uncertainties.  The price of a gold ounce rose to a high of $1317, the silver ounce hovered near $15.50, while palladium tumbled to a low of $1545.


Oil prices drifted lower following weak manufacturing PMI data from the Eurozone and the United States. OPEC and other major producers are planning to extend supply cuts till June to offset any drop in demand due to the ongoing economic slowdown. The West Texas Intermediate crude futures dropped to a low of $58.26, and Brent futures fell to a low of $66.18.

Major Economic Events

GMT Country Event Expectation Previous
9:00 EU German Ifo Business Climate Index 98.7 98.5
9:00 EU German Current Assessment 102.9 103.4
9:00 EU German Business Expectations 94.0 93.8



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