- Market mood turns sour amid Brexit uncertainty on Wednesday.
- US Dollar Index stays relatively calm below 98.50.
- Coming up: September retail sales data from the United States (US).
The USD/JPY pair advanced to its highest level since early August at 108.90 on Tuesday boosted by the upbeat market sentiment amid hopes of the European Union (EU) and the United Kingdom (UK) reaching a Brexit deal ahead of the October 31st deadline.
Brexit headlines continue to impact the risk sentiment
However, Wednesday’s headlines on Brexit revealed that there is a possibility that sides will not be able to finalize an agreement before the end of the day and caused investors to start moving towards safe-haven assets such as the JPY. As of writing, the pair was down 0.15% on the day at 108.67.
In the second half of the day, the retail sales data from the United States (US), which is expected to show an increase of 0.3% on a monthly basis in September, will be looked upon for fresh impetus.
More importantly, markets will remain focused on the developments surrounding Brexit talks and changes in the market mood. At the moment, the S&P 500 Futures is down 0.3% on the day, suggesting that Wall Street’s main indexes are likely to start the day in the negative territory. There won’t be any significant macroeconomic data releases from Japan in the remainder of the week.
Technical levels to watch for
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