Yen wins on today’s forex market
The decision of the German high court destabilized forex markets. Yen turned out to be the biggest winner.
The German high court requested that European Central Bank has three months to present justification for acquisitions under the joint bond-buying project. Otherwise Bundesbank will leave the scheme aimed at softening the pandemic’s impact.
Forex markets were galvanized by the news. Euro and US dollar were both weakened, while other major currencies showed mixed results. British pound remained mostly flat atat US$1.2431. Usually heavily impacted by the risks kiwi and Aussie both gained over 60 cents in trading against the dollar. Japanese yen saw the biggest gains.
It reached the highest position in trading against the euro in three years. Experts believe, that there is still a potential for growth left. The leader of forex strategy at Societe Generale Kit Juckes claims, that yen became a favourite of many currencies when the pandemic began and is likely to hold on to the high positions.