Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

Despite steady global equity markets, investors are still buying the Japanese Yen for protection against heightened volatility ahead of the November 3 presidential election, driving the Dollar/Yen Forex pair lower on Thursday.

The safe-haven Japanese Yen held gains against the U.S. Dollar on Thursday as escalating coronavirus cases in Europe stoked fears across the financial markets that fresh lockdowns would further hit the already fragile global economic recovery.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

At 09:15 GMT, the USD/JPY is trading 104.217, down 0.113 or -0.11%.

Financial market volatility is helping to make the Japanese Yen an attractive safe-haven asset. Equity and currency volatility shot higher on Wednesday and the cost of sourcing U.S. Dollars rose, reflecting fears that the U.S. election and resurgent COVID-19 pandemic could tip markets back into the sort of chaos endured earlier this year.

A sell-off in March wiped a third off the value of U.S. stock indexes over a three-week period and the premium for cash dollars hit multi-year highs as the pandemic slammed markets and locked down economies.

One-week yen volatility against the U.S. Dollar rose to their highest in nearly seven months, nearly doubling from a day ago as the maturities now encompass election day on November 3 and the day after.

Bank of Japan Ends Two-Day Policy Meeting – Keeps Monetary Settings Unchanged

The Bank of Japan on Thursday trimmed its economic and price forecasts for the fiscal year ending in March 2021, heightening expectations it will maintain its massive stimulus for the time being to cushion the blow from COVID-19.

As widely expected, the central bank kept monetary policy steady, including a -0.1% target for short-term interest rates and a pledge to guide long-term rates around 0%.

It also made no changes to a package of measures to ease corporate funding strains caused by the coronavirus pandemic.


BOJ Quarterly Report Outlook

In a quarterly report on the outlook, the BOJ trimmed its growth forecast for the current fiscal year ending March 2021 to a 5.5% contraction from a 4.7% slump projected in July, reflecting sluggish service spending during the summer.

It also downgraded this fiscal year’s core consumer price forecast to a 0.6% fall form a 0.5% drop seen in July. However, the BOJ revised up its forecast for the next fiscal year to a 3.6% increase, against a 3.3% expansion seen in July.

It also upgraded its assessment on exports and output to say they were “increasing”. That compared with the view in July, when it said they were falling sharply.

“Japan’s economy will likely improve as a trend as the impact of the coronavirus pandemic gradually subsides, though the pace of recovery will be moderate,” the report said.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.