August 3, 2010
“Risk aversion was so yesterday,” said the currency bulls after they dropped low-yielding currencies like the yen following the better-than-expected reports around the world. USDJPY gained 21 pips at 86.47 after an intraday high of 86.89, while EURJPY headed straight for 113.89 from its 112.68 open price.
It seemed that all eyes were on high-yielding currencies after euro zone and UK’s manufacturing PMI printed higher than analysts expected and inspired another round of risk rally in markets.
Japan did release their own positive report, but the fourth straight rise in average earnings shown by June’s 1.5% increase did little to boost the yen after the data reflected that employers added more hours to workers instead of adding payrolls. Talk about deceiving! Ha!
Will the yen gain the bulls’ attention today’? No reports are scheduled for release, but keep an eye out for any statement that could affect risk appetite!
"The only cable I watch is the pound baby."