JPY traded on a firmer footing, with risk appetite waning amid fresh concerns over the global growth outlook after the recent U.S. employment numbers. Ahead of the G8 meeting the dollar’s reserve status is the subject of fresh debate, which has also encouraged a reduction in risky positions and beneficial for JPY due to a general flight to low yield currencies.
GBP experienced downside pressure as risk appetite waned on Monday. Cable fell in Asia and saw good selling early on in the European session to trade at 1.6222 lows, which provided support for EUR-GBP and it traded in to the 0.8600 region
The USD-JPY and JPY crosses came under steady selling pressure in Asia as worries over the global growth outlook dominated in the wake of the recent bout of poor unemployment data, culminating in the U.S. non-farm payroll data last Thursday. The Nikkei and DJIA futures lost ground and this helped push USD-JPY from opening levels around 96.00 to lows of 95.26.
