The Japanese Yen is leading the pack ahead of the weekend, with the currency advancing against all its major peers amidst an ongoing liquidation of equity holdings in the face of the coronavirus outbreak and further gains are possible says a major Japanese bank.
Read more: MUFG Favour Stronger Japanese Yen
The Pound continued a week long decline against the Yen Tuesday and is tipped for further losses over the coming days as a toxic cocktail of coronavirus and Brexit risks take their toll and the safe-haven Japanese unit shines.
Read more: Japanese Yen to Keep Sterling Under Pressure as Safe-havens Rule Roost
The big eye-opener on global foreign exchange markets is the sharp and decisive decline in the Japanese Yen, a currency that is not known for its firework displays.
Read more: The Japanese Yen Plummets against Dollar and Pound, More Losses Possible
A sharp sell-off in the Japanese Yen looked set to enter a second day amidst an apparent sudden shift in investor perceptions towards the Japanese economy and its currency.
Read more: Japanese Yen Sell-Off Extends with the Bank of Japan Standing Powerless to Assist an Economy...
Japan's economy shrank by 1.6% in the final quarter of 2019 courtesy of the Government's decision to hike sales taxes, the decline that was far greater than the -1.0% decline markets had been expecting and adds weight to calls for authorities to intervene. Any intervention could meanwhile have repercussions for Yen direction in 2020.
Read more: Japanese Yen: Economy Shrinks 6.3% Leading to Expectations for BoJ Stimulus