The Yen is currently the most remarkable story in the FX space, as we go through the usual mid-August low liquidity patch. The Japanese currency continues to appreciate against the other majors, noticeably the Dollar and the Euro. The Yen, traditionally seen as a refuge asset, is still rising despite the good news that American tariffs on Chinese imports were to be postponed, which inspired a rally in risk related instruments, with indices like the S&P gaining over a percentage point during Tuesday’s session.
Photo by Emmanuel Appiah.
The weak Chinese data published overnight, showing the worst industrial output figures in 17 years, appears to have kept the market sentiment in check and this perhaps explains the rise of the Yen.
