The JPY surged “like crazy” as market participants started to digest the global economy’s previously ignored substandard fundamentals. The JPY has been taking the role of a “safe haven” alone to itself and away from the USD as market participants begin to worry regarding the swell in US debt. The JPY took away more than 100
pips from the USD in just about an hour during the mid-part of the US session as investors exhibited their concerns.
The
Economy Watchers Sentiment index which was reported yesterday came in at 42.2. The index was only expected to reach the 38.1 mark after registering a reading of 36.7 during the month prior. The index measures optimism among consumers and is based on about 2,000 surveys regarding the relative level of current economic conditions of workers. A score below 50 indicates pessimism. However, the improvement in the figure gave additional juice to the rise of the JPY.
No top tier economic reports are scheduled today in Japan. We might see further strength in the JPY if risk aversion in the global market persists.