- USTR Lighthizer says China will double agricultural purchases from US.
- US Dollar Index stays near 97.20 after mid-tier data.
- 10-year US T-bond yield pares early losses on positive mood.
The USD/JPY pair continues to trade in the positive territory near 109.60 on Tuesday supported by a modest recovery in the 10-year US Treasury bond yield.
During an interview with Fox Business Network on Tuesday, US Trade Representative (USTR) Robert Lighthizer said China will double agricultural imports from the US as part of the phase-one trade deal to ease worries over China failing to meet the US’ requirements to continue to roll back tariffs.
With the initial market reaction, the S&P 500 futures rose into the positive territory and the 10-year US Treasury bond yield, which lost nearly 1% earlier in the day, turned flat on the day near 1.87% to reflect the improving risk sentiment.
Upbeat data helps USD recover
On the other hand, the data from the United States on Tuesday showed that Industrial Production rebounded with an increase of 1.1% in November following October’s contraction and helped the greenback stay resilient against its major rivals. Other data revealed Housing Starts and Building Permits rose 3.2% and 1.4%, respectively, in the same period. As of writing, the US Dollar Index was up 0.06% on the day at 97.20.
In the second half of the day, markets will be keeping a close eye on Wall Street’s performance to assess the risk perception. During the Asian trading hours on Wednesday, Merchandise Trade Balance data from Japan will be looked upon for fresh catalysts.
Technical levels to watch for
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