EUR/JPY at Two Month Low around 137

The yen hovered at two-month highs against the euro and dollar early on Tuesday, having powered higher as a selloff in risk assets forced investors to cover bearish positions in the low-yielding Japanese currency.

Disappointing U.S. data that showed manufacturing activity slowed sharply last month dealt a heavy blow to markets already jittery about a selloff in emerging markets.

“A poor ISM manufacturing print exacerbated growth fears and further directs attention to the non-farm (U.S.) payrolls due at the end of this week, after the December release’s dismal showing,” analysts at JPMorgan wrote in a note to clients.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.