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  • USD/JPY drops 30 pips from session highs as dollar weakness across the board. 
  • Steepening of the yield curve fails to put a bid under the greenback.

The American dollar is struggling to draw bids despite the steepening of the Treasury yield curve. 

The USD/JPY is trading largely unchanged on the day near 104.48, having printed a high of 104.82 early today. The pair has erased gains even though the yield curve, as represented by the spread between the 30- and five-year yields has widened or steepened to the levels last seen in 2016. The steepening of the yield curve is usually dollar positive. 

The dollar has been offered across the board in the last hour or so, possibly on reports stating that Democratic presidential candidate Joe Biden is leading in key states like Florida. However, President Trump has easily won two Republican strongholds in Indiana and Kentucky, according to Associated Press. 

The dollar could suffer a deeper decline if Biden extends the lead in Florida. The next hour will bring results from some key swing states, including Florida and Pennsylvania and we may get a look at trends in Georgia, which Democrats hope to pick up, according to Bloomberg. 

Technical levels