Japanese Yen Moves Up To A 1-Month High vs The Euro

The Japanese Yen reached out and touched a 1-month high against the Euro on Thursday, as concerns over US fiscal issues on the horizon weakened the risk appetite of investors.

The Dollar and Yen have remained stronger against most of their major counterparts today.

The greenback though, has stayed weaker against the Yen following Obama's victory over Republican challenger Mitt Romney, which has boosted expectations from investors that the Federal Reserve will maintain monetary stimulus.

Romney is known to have disagreed with the Fed's measures to stimulate the economy and had said that he would replace Chairman Ben S. Bernanke at the end of his term in January 2014.

I foresee that the majority of the markets focus for the rest of the year, will be the so called "fiscal cliff" while for now, we can expect some post-election bounce in the Dollar

The Euro had initially stepped up higher after the Greek parliament approved the government's austerity measures, which was required in order to secure the next installment of bailout money from international lenders.

But the Euro could not hold on to these gains and quickly surrendered before going on to reach it's lowest level against the Yen in about a month.

The fiscal cliff is a term referring to the $607 billion in tax increases and spending cuts set to be implemented in 2013, that is unless congress decides and acts otherwise. In the meantime, I expect that Investors will be purchasing safe currencies like the U.S. Dollar and the Yen.

The Dollar earlier stood at $1.2754 per Euro and had dropped 0.1% to 79.90 Yen, having dropped as much as 0.4% on Wednesday. The Euro has declined by 0.3% to 101.90 Yen.

The Euro has traded near a two month low in the run up to an European Central Bank (ECB) meeting today. ECB President Mario Draghi has said that Europe's debt crisis is affecting Germany.

A report due out today, by the Federal Statistics Office in Wiesbaden, is forecast to show that exports in Germany have likely declined by 1.5% in September from August.

Most Economists expect the that the central bank will keep its benchmark rate unchanged at 0.75%.

The market's concerns are reflected in the fact that the Euro has remained weaker even after Greece's Prime Minister, Antonis Samaras, had secured approval of austerity measures needed to unlock bailout funds earlier today.

As there is still uncertainty and concern about whether or not Greece will be able to secure the next tranche of aid at the next European Union summit, we are seeing the Yen and the Dollar being bought as investors seek safety.

The Australian Dollar rose against most of its major counterparts following the release of data that had shown that Australian employers had added 10,700 more jobs in October, a figure much larger than what most economists had expected.

The Aussie earlier stood at NZ$1.2748 and $1.0408.