USD/JPY Below 102.20 on Havens Bid

The yen held gains from yesterday versus most of its major peers as a flareup in tension between Russia and western nations over Ukraine boosted haven demand.

Japan’s currency briefly surged against the dollar yesterday amid speculation of what’s known as a “fat-finger,” or accidental, trade. Australia’s dollar was near its highest in a week before data predicted to show employers added jobs for a second month. The euro yesterday fell to its weakest level since November ahead of a European Central Bank decision today and press conference by President Mario Draghi.

“Given there’s still significant uncertainty surrounding Ukraine and certainly in Gaza as well, that bid tone for the yen can continue,” said Kymberly Martin, a market strategist in Wellington at Bank of New Zealand Ltd. The euro “downtrend seems to be pretty well ingrained” given Draghi is unlikely to be hawkish or insensitive to data weakness in the common-currency region, she said.

Bloomberg

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