Yen Soars as Global Markets Grapple with Liquidity Crunch
Global markets are experiencing limited liquidity due to the Labour Day holiday in the US and the absence of US investors. This has led to cautious positioning ahead of upcoming inflation figures, which will determine the next steps taken by central banks.
The Japanese yen is on a strong upward trend, reaching its highest level against the dollar since February, driven by massive hedging orders and bets on further interest rate rises in Tokyo. Meanwhile, the euro remains resilient despite the shocking results of regional elections in Germany.
Energy commodity prices have surged due to the tense situation in the Middle East, with Brent crude approaching $98 per barrel. This has had a direct impact on American motorists, who are paying the highest ever prices for petrol during this festive period.