- 10-year US T-bond yield is losing nearly 3% on Wednesday.
- US-China trade uncertainty causes market sentiment to turn sour.
- Annual inflation in the US is expected to stay unchanged at 1.7% in October.
The USD/JPY pair came under renewed bearish pressure on Wednesday as the risk-off atmosphere allowed safe-havens to find demand. As of writing, the pair was trading at 108.84, losing 0.15% on a daily basis.
JPY takes advantage of flight to safety
After US President Donald Trump on Tuesday said that they will ‘substantially’ raise tariffs on Chinese imports if they don’t make a deal with China, “Tariffs are emerging as the main stumbling block in efforts by the US and China to come to a limited trade deal,” the Wall Street Journal reported.
Reflecting the dismal market mood, the 10-year US Treasury bond yield, which rose more than 13% last week, is erasing around 3% on a daily basis. Additionally, Major European equity indexes are erasing between 0.3% and 0.6%.
In the early American session, the US Bureau of Labor Statistics will release its October inflation report. Experts see the core Consumer Price Index (CPI) to stay unchanged at 2.4% on a yearly basis. Later in the session, Federal Open Market Committee (FOMC) Chairman Jerome Powell will be testifying before the Joint Economic Committee of the Congress. FOMC members Barkin and Kashkari are scheduled to deliver speeches on Wednesday as well.
Technical levels to watch for
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