USD/JPY recovers to 107 area

25 June, 2019

10-year US T-bond yield extends slide, drops below 2%. US Dollar Index stays calm near the 96 mark. Fed's Williams & Bostic, FOMC Chairman Powell are scheduled to speak later today.

After closing the day virtually unchanged near the 107.30 mark on Monday, the USD/JPY pair came under a renewed selling pressure on Tuesday as none of the latest developments helped ease the geopolitical tensions and allowed safe-haven assets to continue to outperform their rivals. Following a drop to its lowest level since early January at 106.80, the pair staged a technical correction and was last seen trading near 107, erasing 0.25% on a daily basis.

The ongoing conflict in the Middle East, the uncertainty surrounding the U.S.-China trade talks and expectations of the Fed cutting rates in July weighed on the 10-year US Treasury bond yield, which has a strong correlation with the USD/JPY pair, on Tuesday and dragged it below the critical 2% mark. Reflecting the sour sentiment, the S&P 500 Futures is posting modest losses on Tuesday, suggesting that Wall Street could start the day in the negative territory and allow safer assets to draw interest in the second half of the day.

Meanwhile, the US Dollar Index is struggling to make a meaningful recovery and stays close to the 96 mark as investors are moving to the sidelines ahead of the day's key events. 

Later in the session, NY Fed President Williams, FOMC Chairman Powell, and Atlanta Fed President Bostic will be delivering speeches. Moreover, the U.S. economic docket will feature new home sales data, Conference Consumer Confidence Survey, and the Richmond Fed Manufacturing Index. 


Source link  
Gold drops to fresh session lows

Fails to capitalize on last week's goodish bounce, despite a subdued USD demand. A goodish bounce in US bond yields/risk-on mood prompts some fresh selling...

Gold to retest trend channel resistance

The precious metal's corrective slide on Friday, from near six month tops, stalled ahead of an important confluence resistance break-point now turned support...

Gold looks to $1210 ahead of US data

Stalled US dollar bounce combined with negative European equities, Treasury yields underpin. Volatile within $ 5 range ahead of the US core PCE data...


Gold and oil shorts covered

According to the CFTC Weekly Report (W/E July 10), as the WTI crude oil spiked toward $75/bbl amid fears of supply shortages and low spare capacity, which...

Global markets in a delicate spot

Analysts at Westpac, suggest that global markets remain in a delicate spot due to ongoing uncertainty of the US/China trade saga and growing geopolitical tensions...

Powell to stick to gradual path

Analysts at Deutsche Bank suggest that new Fed Chair Powell’s testimony is at 3pm GMT and he will be speaking on behalf of the FOMC...


GBP futures: bottomed out?

In light of advanced figures for GBP futures markets, open interest decreased by almost 5K contracts on Friday vs. Thursday's 209,855 contracts...

Strong market sentiment continues

Chief Analyst, Allan von Mehren at Danske Bank suggests that global market sentiment continues to be strong with further decent increases in stock...

A week with no market movers

In the US, the coming week brings no market movers. The week after New Year’s Eve, however, brings several interesting releases. As the statement from the meeting..

  


Share it on:   or