The safe haven currencies were once again in high demand from a risk-averse market as anxieties grow over the continual slump in the Chinese economy. Earlier, the Euro had also been in high demand as a carry trade currency, though that demand has diminished ahead of Thursday’s ECB policy meeting. Analysts and experts are in agreement that the European Central Bank will expand its QE program and will further lower already negative rates in an attempt to coerce Eurozone banks to park their overnight cash among their peers rather than at the ECB.

As reported at 10:42 am (GMT) in London, the USD/JPY was trading 0.29% lower at 112.3150 Yen; the pair has ranged from a session low of 112.2350 Yen to 112.7640 Yen. The EUR/JPY was also lower at 123.1540 Yen, down 0.68%. The EUR/USD fell from its session peak of $1.1005 and was trading lower at $1.0964, down 0.39%.

Yen Improves Despite BoJ Efforts

Over the course of this week, the Japanese Yen has been the clear winner among FX traders as uncertainty reigned in the wake of disappointing Chinese economic data. That has come about despite the varied efforts of the Bank of Japan to maintain a depreciated currency. In turn, that has weighed heavily on the commodity-linked currencies, especially those in the region, including the Australian and New Zealand Dollars. Many believe that the situation in China will play out in the upcoming policy reviews of the world’s major central banks with a more dovish stance the likely outcome.