5 Nov 2013
Yen gains on weakening Eurozone outlook
FXstreet.com (London) - Yen has continued to rise on safety demand as the Eurozone economy looks increasingly fragile.
The yen has appreciated 0.45 percent against the euro to JPY132.6550 while gaining 0.31 percent against the dollar to YPY98.3170.
Last week’s weaker than expected Eurozone inflation numbers coupled with high unemployment rates have fuelled expectation that the ECB will move to cut its benchmark main refinancing rate when it meets on Thursday.
Eurozone CPI printed at 0.7 percent for September versus a consensus expectation of 1.1 percent.
The Eurozone unemployment rate remains at a record high of 12.2 percent. Figures released by the Spanish labour ministry this morning showed that Spain's unemployment increased by 87,028 in October.
Lacklustre data has led the ECB to cut its forecasts for Eurozone growth to 1.1 percent from its May estimates.
Despite weak inflation, high unemployment and weak manufacturing data leading the ECB to downgrade its outlook, the EU's Commissioner for Economic and Monetary Affairs, Olli Rehn stated that: "There are increasing signs that the European economy has reached a turning point."
The yen has appreciated 0.45 percent against the euro to JPY132.6550 while gaining 0.31 percent against the dollar to YPY98.3170.
Last week’s weaker than expected Eurozone inflation numbers coupled with high unemployment rates have fuelled expectation that the ECB will move to cut its benchmark main refinancing rate when it meets on Thursday.
Eurozone CPI printed at 0.7 percent for September versus a consensus expectation of 1.1 percent.
The Eurozone unemployment rate remains at a record high of 12.2 percent. Figures released by the Spanish labour ministry this morning showed that Spain's unemployment increased by 87,028 in October.
Lacklustre data has led the ECB to cut its forecasts for Eurozone growth to 1.1 percent from its May estimates.
Despite weak inflation, high unemployment and weak manufacturing data leading the ECB to downgrade its outlook, the EU's Commissioner for Economic and Monetary Affairs, Olli Rehn stated that: "There are increasing signs that the European economy has reached a turning point."