The Japanese Yen has held firm versus many of its peers since the early part of June, gaining some decent ground across the board.
It has been largely supported by the growing risks that remain present and continue to stack up in favour of seeking safe-haven. The advance has been observed again the likes of; USD, EUR, GBP, CAD, AUD, NZD, essentially across the board.
There are several supporting fundamental factors to consider:
The rising covid19 cases that are still being observed globally, with the ever-growing second wave signs in the United States. Reports from US government experts believe more than 20 million Americans could have contracted coronavirus – 10 times more than official counts, as cases are now rising in more than half of states and a new warning came of the risk of “apocalyptic” infection in major cities.
The news came as Texas, one of the most populous US states, has seen a surge in Covid-19 cases and the governor on Thursday announced that he would have to pause the next phases in what has been a rapid reopening of business. Cases are now rising in 27 US states, up from 22 earlier this week.
On the geopolitical front; North and South Korea tensions, then the U.S. and China risk of the phase one deal falling apart, as the relations between the two have massively dropped.
A period of consolidation/pullbacks were observed with some of the JPY pairs, however, this has presented another opportunity for further backing of the safe-haven, given the noted market risks.
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