Published by Jamie JemmesonThe yen was trading near a seven-week low against the euro as confidence continued to return to forex markets.Demand for riskier currencies increased in trading this morning (July 27th) as investors reacted to positive economic data published in the US yesterday.There has been a strong focus on US fundamentals in recent weeks as forex brokers feared a slowdown in the world's largest economy.Speaking to Bloomberg, Toshiya Yamauchi, currency analyst in Tokyo at Ueda Harlow, commented: "Excessive pessimism in the US that stoked expectations for monetary easing last week has waned. The bias is for cross currencies to rise against the yen."At 03:35 Central Standard Time, the euro was trading at a high of 113.33 yen, rising from a low of 112.90 yen touched an hour earlier.The rally was spurred in large part by yesterday's announcement from the US Commerce Department that home sales increased by 24 per cent from May to June, against expectations of a 3.3 per cent rise.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.