The yen rose today as uncertainty about the global economic outlook and forthcoming U.S. corporate earnings increased the safe-haven appeal of the Japanese currency.

Sterling fell as weak industrial output data reinforced doubts about a UK recovery. The euro dipped against the dollar, but losses were capped by a surprise increase in German factory orders that initially pushed it to a session high above $1.40.

When risk aversion rises, investors often cut holdings of stocks and higher-yield currencies and buy back the yen and dollars that were used to finance the trades.

“We’ve been getting very mixed signals, with some positive data and some very poor data, so it’s extremely difficult to pinpoint direction,” said Fabian Eliasson, vice president of currency sales at Mizuho Corporate Bank in New York.

“As a result, people are backing out of high-yield assets and into the yen and dollar. Now, the focus will turn to corporate earnings as

The euro recovered against the dollar today, Friday, as traders picked up the single European currency following its fall the previous session, when weak U.S. jobs data helped lift the dollar across the board.

Some traders booked profits on the euro’s slide on Thursday, while analysts said currency movements were aggravated due to thin volumes as U.S. markets were closed for the Independence Day holiday.

On Thursday, data showed U.S. employers cut a greater-than-expected 467,000 jobs in June, leading to heightened risk aversion on the back of pessimism about the recovery of the U.S. economy.

The bleak data pressured the euro and currencies perceived to be higher risk such as the Australian and New Zealand dollars, but the single European currency found its footing on Friday after selling subsided.

This kept the euro hovering at the $1.40 level, as some market players judged the sell-off in the euro — which knocked it from a