December 1, 2011
Surprisingly, even with the markets on risk-on mode, the yen took just a small hit in yesterday’s trading action. EUR/JPY managed to post a 43-pip gain and close at 104.21, while GBP/JPY finished 16 pips higher at 121.70.
The big news that helped boost risk appetite yesterday was that major central banks cut the costs of emergency dollar loans. This helped higher yielding currencies soar up the charts. Surprisingly though, the yen didn’t suffer too much losses, as traders decided to unload dollars instead of yen.
No biggies on the docket today, so we should continue to focus on risk sentiment. Risk appetite has clearly picked up a bit this week, but as I always say, sentiment can change on a dime, so be careful out there!
"The only cable I watch is the pound baby."