The Asian stocks and euro had much to gain this week after the European political struggles rose to a new level. The high demand coming from Europe eased the pressure on China after the Chinese foreign exchange saw a decline in January. As a consequence, the yen and euro soared in light of high demands generated by European concerns.
The dollar registered on Tuesday the lowest point since November 28th, as it was worth 111.590 yenwhich fell from its steady trade of 111.930. In contrast, the euro followed a fortunate evolution by rising from its two-month value of 119.750 yen to a better form of 119.910 yen. The same positive outcome stretched over the New Zealand and Australian dollars as well as the British pound thanks to the empowered Chinese currency.
On Monday, the American landscape wasn’t so fortunate as its peers. The U.S. Treasury yields went through depreciation at the same time when the oil market and Wall Street met a low valuation. As a consequence, due to the national efforts to rally against the dollar, the Japanese currency went up based on a risk aversion increase.
Moreover, the Asian stock benefited the new wave of investors that back away from other corners of the world because of tensed European political struggles. These concerns rose in the wake of Marine Le Pen’s speech she gave on Monday. She is the president of a national conservative political party, namely the National Front. She vowed to make the most of the power France now enjoys and depart the euro zone in the future.
In consequence, the French government bond yields were empowered by these strong nationalist claims. On the other hand, the European stocks fell in the shadow of crippled European establishment which brings stressful risks to its political scene. Moreover, the euro deepened, even more, its impact on the economy by falling by 0.3% at $1.0725. Beforehand, the single European currency was in an eight-week development that traded at $1.0829 thanks to a weaker dollar.
In the upcoming months, investors have to take into consideration the political theater that expects a series of European elections. In March and September, Germany and Netherlands are going to vote for their federal parliament and the House of Representatives respectively. Nonetheless, the greenback so far has fallen 4.5% below the yen since the beginning of the year.
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