- 10-year US T-bond yield adds more than 2% on Wednesday.
- Wall Street’s main indexes trade at all-time highs.
- US Dollar Index steadies near 97.40, looks to post modest gains.
Although its trading action stays relatively muted following the sharp rally witnessed in the second half of the previous week, the USD/JPY pair continued to edge higher on Wednesday supported by rising US Treasury bond yields and the broad USD strength. As of writing, the pair was up 0.12% on the day at 109.62.
Market sentiment remains upbeat
Despite the political unrest in the US ahead of the House of Representatives’ historical vote on the impeachment of President Trump, Wall Street’s main indexes climbed to fresh all-time highs on Wednesday and the 10-year US Treasury bond yield rose to its highest level since mid-November by adding more than 2% on a daily basis to make it difficult for safe-haven JPY to find demand.
On the other hand, the US Dollar Index advanced to a fresh weekly top near 97.50 on Wednesday to help the pair stay in the positive territory. However, the lack of fundamental drivers behind the USD strength suggested that today’s movement was technical in nature.
On Friday, the US Bureau of Economic Analysis will publish the third-quarter Gross Domestic Product (GDP) data and the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, figures.
Technical levels to watch for
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