Long Term profit investment -
ECB - Draghi announced today that they will be careful with inflation and the economy slow down, also stating that they are likely to keep the idea of cutting rates in mind, investors saw this as a bearish sign for the European economy, which will be depreciating the EUR against a basket of major currencies across the markets.
EUR x JPY have been o a bearish trend for months now, due to the Italian recession last year, and now with a possible recession in Europe as a whole, as JPY is a safe haven currency, and whenever there is fear in the markets or political and economic uncertainty, investors tend to put their money into Japanese bonds, which increases the Yen's value and right now is the perfect opportunity to buy the Yen against the Euro.
ECB - Draghi announced today that they will be careful with inflation and the economy slow down, also stating that they are likely to keep the idea of cutting rates in mind, investors saw this as a bearish sign for the European economy, which will be depreciating the EUR against a basket of major currencies across the markets.
EUR x JPY have been o a bearish trend for months now, due to the Italian recession last year, and now with a possible recession in Europe as a whole, as JPY is a safe haven currency, and whenever there is fear in the markets or political and economic uncertainty, investors tend to put their money into Japanese bonds, which increases the Yen's value and right now is the perfect opportunity to buy the Yen against the Euro.