Yen: Heavy buying after Obama headlines

By FXstreet.com | August 07, 2014 AAA

FXStreet (Bali) - The Japanese Yen is being bid to the boots following headlines that Obama authorized targeted airstrikes in Iraq to protect American personnel.



The repercussions of such headlines, which only adds to the geopolitical risks due to ongoing conflicts in Ukraine and Gaza, have caused a big reaction in the market.



The Nikkei 225 in Japan has taken a big dip, falling over 3%. S&P500 futures is down over 0.5%, with the US 10-year yield touching a 14-month low at 2.38%, which represent a 5bps drop since markets closed in NY. USD/JPY is under extreme pressure, currently down almost 0.5%, while even worse performance is seen in AUD/JPY, which has fallen over 0.7% after the RBA cut its outlook on inflation and growth.



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