Article by ForexTime
The yen was naturally the best performer this week as it is seen as a safe haven asset and there was general risk aversion in the markets recently. There are a lot of uncertainties happening around the globe, ranging from concerns of a global slowdown after the IMF growth projections this week, protests in Hong Kong, the Ebola virus outbreak, geopolitical tensions (the ISIS).
By the end of the trading week, currency and bond markets were subdued and stocks and oil fell.
The greenback was little changed at 107.88 yen on Friday after touching a three-week low of 107.53. It was on track to lose about 1.8 percent on the week, which would be its largest weekly loss since March. On October 1, the dollar surged to a six-year high of 110.09 yen on expectations for an early rate hike by the Fed. This changed after the Federal Reserve’s dovish undertones sapped the dollar’s recent strength and lower US treasury yields helped capped its rebound.
going forward, the market focus will also be on the risk of further euro weakness. The single currency was flat at $1.2695 but still within reach of a low of $1.2664 struck on Thursday after a plunge in German exports raised fears of a recession in Europe’s largest economy and reinforced a case for more action by the European Central Bank.
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