Thursday, October 12, 2017

The yen was at 3-week high against the euro and the pound before the referendum

The yen was at 3-week high against the euro and the pound before the referendum

On Tuesday, the yen rose to a three-year highs against the euro and the pound, as concerns over the upcoming referendum on Britain's membership of the European Union forced the investors to turn to safe assets.

Pair EUR / JPY fell to a minimum of 118.52, the lowest price since January 2013, and is now trading at 118.62, down 1.11% today.

The pair GBP / JPY fell 1.29% to 149.46, the lowest level since August 2013.

Market sentiment hit by concerns over the possible withdrawal of Great Britain from the EU on the results of the referendum on 23 June.

Investors fear that Brexit could trigger a period of uncertainty in financial markets and affect growth in the region.

The yen was generally stronger in recent days after the publication of a number of public opinion polls ahead of the referendum on 23 June.

According to the YouGov poll, conducted for The Times and published on Monday, for the fact that the country has left the block, ready to vote 46% of respondents, compared with 39%, was in favor to stay.

The results of another survey for the Guardian newspaper showed 53% -s' output support against 47% of the rest.

At the same time Betfair data have shown that the likelihood that the country will remain in the unit has fallen to 59% compared to 78% last week.

On Tuesday, Japan's Finance Minister Taro Aso again warned against fresh strengthening of the yen, saying officials would "respond decisively" to prevent speculative movements in the currency market.

Aso also said he will closely monitor the referendum in the UK next week, given its potential impact on the financial markets.

The yen traded at almost six-week high against the dollar, with USD / JPY has weakened by 0.44% to 105.78.

The Swiss franc is trading near three-month highs against the euro, with EUR / CHF fell 0.47% to 1.0836.

The single currency fell to polutoranedelnoy low against the dollar, EUR / USD pair fell by 0.73% to 1.1210.

USD index, which tracks the greenback against a trade-weighted basket of six major rivals, rose by 0.55% to 94.94.


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