Risk appetite has surged in the wake of a rout on the Asian stock markets, which pushed the Japanese Yen and the US Dollar higher, albeit briefly. In the Eurozone, the situation in Greece remains unresolved with Greece requesting a 2-year loan program. Members of the EU have given the Greek government until the weekend to show them the reforms they plan to make in return for future loans. For investors, the biggest concern is whether the Greek government will be able to make the upcoming payment to the European Central Bank.
As reported at 11:20 am (BDT) in London, the EUR/USD was trading at $1.1038, mid-point in the day’s trading band of $1.0974 at the low and $1.1059 at the high. The AUD/USD was down at $0.7423, a loss of 0.23%. The EUR/CHF was trading at 1.0399 Swiss Francs, a loss of 0.8%.
Traders Still Wary of BOJ Intervention
The USD/JPY was 0.91% lower, trading at 121.3500 Yen. Investors remain wary of a possible intervention by the Bank of Japan. Last month, the bank Governor described the currency as “very weak” which was perceived as the equivalent of a verbal intervention, according to FX traders.