Yen’s ascendance continues on Ukraine concerns

The Japanese yen has strengthened every day this week, as market participants reshuffle their portfolios ahead of this weekend’s referendum on Crimea.

Sentiment in the forex market has been risk-off all week, partly because of China, partly because of Russia, but as we draw closer to the Crimea vote, it is the latter that is jangling nerves.

US Secretary of State John Kerry held talks in London today with Sergei Lavrov, Russia’s foreign minister. Though Mr Lavrov described the meeting as constructive, he admitted US and the Russia have ‘no common vision’ regarding the Ukrainian crisis.

Mr Lavrov said Russia would respect the result of Sunday’s referendum in which Crimeans are set to vote on whether to secede from Ukraine and join the Russian Federation. Mr Kerry said the referendum is ‘illegitimate’ and renewed his warning that there would be consequences if Russia does not change course.

Fears that the situation could soon escalate have led to flows into safe haven instruments, helping the yen to advance 1.8% this week against the dollar, its biggest weekly gain since 24 January. By mid-afternoon in New York, USD/JPY had fallen 0.51% to $101.35.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.