Stocks and the euro are lower as markets respond to the tragic events in Paris. Due to negative sentiment, the yen is the top performer while the euro opened 75 pips lower. The attacks in Paris boosted traditional safe havens and weighed on the euro at the open. The yen is the classic safe harbor and is leading early along with Treasuries and gold.
Meanwhile, economic data out today was the first reading on Japanese Gross domestic product data. The data showed yet-another recession in Japan in the third quarter. This would be the second recession since Prime Minister Shinzo Abe took office in December 2012. GDP declined an annualized 0.8 percent in the third quarter, following a revised 0.7 drop in the second quarter. This classifies as a recession. Estimates were for a 0.2 percent decline.
Due to safe haven demand for the yen, the currency was not impacted too much by the disappointing Japanese data.
USD/JPY bounced from the 122.23 early low to 122.60 before steadying. EUR/USD gapped down when markets opened in Asia, reaching 1.0750 compared to Friday’s close of 1.0775. GBP/USD did little in tight 1.5208-37 range in Asia, as the market focus was elsewhere. Gold advanced 1 percent and was last at $1,092.80-1,093.2 per ounce, up $9 from Friday’s close.
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