- EUR / JPY fell for the second day in a row on Tuesday.
- The market’s cautious attitude helps the JPY to stay strong against its rivals.
- The growing number of coronavirus cases in Europe could continue to affect the EUR.
The pair EUR/JPY It lost nearly 50 pips on Monday and continued to push lower on Tuesday with the JPY finding demand a safe haven and remaining resilient against its peers. At time of writing, the pair is trading at fresh daily lows at 123.47, shedding 0.24% on the day.
Market bad mood hurts EUR
Investors remain concerned about the possibility of nationwide lockdowns in Europe as countries struggle to control the spread of the coronavirus. Earlier in the day, Italy posted its biggest one-day increase of 21,994, France announced 33,417 new confirmed cases with 523 deaths, and the UK reported 22,885 new infections.
More importantly, according to various media outlets, French President Emmanuel Macron will deliver a national speech and will likely announce additional measures on Wednesday. Furthermore, Dutch Prime Minister Mark Rutte is considering a nationwide lockdown.
Reflecting the risk averse market environment, the German DAX, Euro Stoxx 50 and the UK FTSE 100 indices lost around 1%.
Meanwhile, with the 10-year US Treasury yield falling nearly 3% on Tuesday, the JPY is retaining its strength in the second half of the day and allowing the downward pressure to remain intact.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
