Home Forex Yen Holds Onto Gains, Aussie Slips, Euro Falls

Yen Holds Onto Gains, Aussie Slips, Euro Falls

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Exchange rating. Currency sign yen and dollar.

The yen saw slight gains on Friday after PPI data showed a better-than-expected pickup.

PPI data from Japan showed a 4.2% decline year-on-year in May, but climbed 0.2% month-on-month, beating expectations.

Meanwhile, the Australian dollar slipped, with AUD/USD down 0.27% at 0.7410.

USD/JPY was down 0.07% at 107.01.

In Europe, the euro fell sharply against the dollar, erasing its gains from the previous session as George Soros and Mario Draghi expressed concerns over the euro zone’s economy.

The euro was trading between 1.1305 and 1.1416 before holding steady at 1.1318. Despite a month of volatile trading, the euro is up 1% against the dollar and has remained above 1.13 for six consecutive sessions.

During his speech in Brussels on Thursday, Draghi criticized politicians in the euro zone for slowing economic reforms while pursuing their own political agendas. Draghi said the European Central Bank is doing the majority of the work, while political leaders have offered little help in enacting appropriate fiscal policies.

“There are many understandable political reasons to delay structural reform but there are few, very few, good economic ones,” said Draghi. The ECB president said the costs of delay are “simply too high.”

Mario Draghi’s comments come just days after the ECB initiated a corporate bond program, the bank’s latest tool to help bolster low inflation. The corporate bonds will be limited to just investment-grade securities, the ECB says. The central bank is expected to release a list of corporations participating in the scheme next month.

The euro was also hurt by comments from investor George Soros, who cited a number of concerns impacting the current outlook for the global economy, including the migration crisis in the euro zone and the potential for the U.K. to leave the European Union after the referendum in two weeks.

After Soros’s comments, investors turned to safe-havens, like the Japanese yen and gold.

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