Euro set for weekly drop, yen eyes biggest gain since early September
TLT•The euro was set for a 0.42% weekly decline against the dollar, while the yen was on track for its biggest weekly gain since early September as investors sought safety amid fragile equity markets.
1. Yen gains on safe-haven demand
The yen attracted safe-haven demand amid a sell-off in AI-related stocks and concerns about France’s fiscal outlook. The dollar rose 0.15% to 157.00 yen on Friday, while the euro fell 0.05% to 175.75 yen and was on track for a 1.0% weekly decline.
2. Euro faces pressure
The euro was last down 0.15% at $1.1200 and set to end the week 0.42% lower. A sell-off in French government bonds pushed the country’s risk premium to levels last seen during the 2011 euro zone sovereign crisis, while French business activity unexpectedly contracted in October.
3. Policy meetings ahead
Investors are watching next week’s European Central Bank and Federal Reserve decisions. Japan’s annual core inflation exceeded the central bank’s 2% target in September for the first time in nine months; most economists polled expect the Bank of Japan to hold rates next week and raise them by a quarter point at its following meeting in December.
