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Euro Japanese Yen Exchange Rate Slides on French Election, Remains Near 1-Year Highs
Published: 5 May at 1 PM Tags: Euro Exchange Rate, Currency Exchange, Swiss Franc Exchange Rate, Euro Crisis, Yen Exchange Rate, UK, Exchange Rates, Inflation, France,
The Euro has fallen moderately against the Japanese Yen today, but remains close to its best exchange rate since May 2017 at 123.05.
The latest Eurozone news has been positive, with retail activity in April rising from 49.5 to 52.7. A figure above 50 points indicates sector growth, which is a relief of Euro traders.
Despite the good news, however, the Euro has fallen against the Yen due to concerns about the French Presidential election.
The May 7th vote is considered a real test for the Eurozone, as a victory for Marine Le Pen could lead to the eventual breakup of the EU and Eurozone.
Le Pen is one extreme in the election final; the other is Emmanuel Macron, who has spoken of reforming the EU, but keeping France inside it. Broadly speaking, traders are hoping for a Macron victory on May 8th as this would reduce current fears about the EU and Eurozone’s future.
Another issue affecting the Euro has been the relationship between the EU and UK. Relations have soured somewhat after officials from both sides traded insults about the Brexit process.
If negotiators fail to bury the hatchet then the Euro could slide on fears that the EU will be damaged by a bad Brexit deal.
Japanese Yen Appreciates as JP Officials Promote Currency and Wage Growth
Despite the handicap of no domestic data, the Japanese Yen has appreciated today on a pair of supportive statements.
In the first case, Bank of Japan (BoJ) Governor Haruhiko Kuroda has spoken positively on national wages;
‘[Projected growth of] 1.5% is not great, but in Japan it is well above medium-term potential growth rate, meaning that the output gap continues to shrink. The labour market continues to tighten, so wages and prices would eventually rise to achieve the 2% inflation target around 2018’.
Additionally, Japanese Finance Minister Taro Aso has ‘talked up’ the Yen, declaring it a stable currency capable of increasing Asian financial stability.
Next week’s first big JP news will come on Monday, covering Japanese consumer confidence in April. A significant rise may also trigger a Japanese Yen rally.
The latest Eurozone news has been positive, with retail activity in April rising from 49.5 to 52.7. A figure above 50 points indicates sector growth, which is a relief of Euro traders.
Despite the good news, however, the Euro has fallen against the Yen due to concerns about the French Presidential election.
The May 7th vote is considered a real test for the Eurozone, as a victory for Marine Le Pen could lead to the eventual breakup of the EU and Eurozone.
Le Pen is one extreme in the election final; the other is Emmanuel Macron, who has spoken of reforming the EU, but keeping France inside it. Broadly speaking, traders are hoping for a Macron victory on May 8th as this would reduce current fears about the EU and Eurozone’s future.
Another issue affecting the Euro has been the relationship between the EU and UK. Relations have soured somewhat after officials from both sides traded insults about the Brexit process.
If negotiators fail to bury the hatchet then the Euro could slide on fears that the EU will be damaged by a bad Brexit deal.
Japanese Yen Appreciates as JP Officials Promote Currency and Wage Growth
Despite the handicap of no domestic data, the Japanese Yen has appreciated today on a pair of supportive statements.
In the first case, Bank of Japan (BoJ) Governor Haruhiko Kuroda has spoken positively on national wages;
‘[Projected growth of] 1.5% is not great, but in Japan it is well above medium-term potential growth rate, meaning that the output gap continues to shrink. The labour market continues to tighten, so wages and prices would eventually rise to achieve the 2% inflation target around 2018’.
Additionally, Japanese Finance Minister Taro Aso has ‘talked up’ the Yen, declaring it a stable currency capable of increasing Asian financial stability.
Next week’s first big JP news will come on Monday, covering Japanese consumer confidence in April. A significant rise may also trigger a Japanese Yen rally.
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Source: moneytransfer.co.uk