- Wall Street fails to cling to early gains.
- 10-year T-bond yield loses more than 1.5%.
- US Dollar Index finds resistance near 97.
Pressured by the falling Treasury bond yields and the sour market sentiment, the USD/JPY pair slumped to a daily low of 110.23 earlier today and struggled to make a meaningful recovery. As of writing, the pair was trading at 110.40, losing 0.2% on a daily basis.
Despite the fact that the greenback gathered strength in the second half of the day, the pair couldn’t gain traction amid the uninspiring performance of Wall Street. Following a positive start to the day, major equity indexes in the U.S. dipped into the negative territory to confirm that investors are not yet ready to move away from safe-haven assets such as the JPY. Moreover, the 10-year US T-bond yield continued to push lower to renew its weakest level since December 2017.
Earlier today, the data published by the U.S. Census Bureau showed that the trade deficit in the U.S. narrowed to $51.1 billion in January to better the market expectation of $57 billion and helped the buck grab some attention. After advancing closer to the 97 mark, the US Dollar Index has gone into a consolidation phase and was last virtually unchanged on the day around 96.80.
In the early Asian session, foreign bond investment from Japan will be released. Fourth quarter GDP growth data from the U.S. later will highlight the economic calendar.
Technical levels to consider
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