- DJIA down over 400 points for the day, US 10-year note yield hit 2.42%.
- USD/JPY broke below the 110.00 level, hits its lowest since early February.
The US Treasury yield curve inverted for the first time in over a decade amid renewed fears of a global economic downturn following the release of European PMI earlier today. Wall Street, in the meantime, collapsed, with the Dow Jones Industrial Average now over 400 points lower. At this rhythm, seems the US indexes will had their worst day since the beginning of the year, with financial-related equities leading the way south.
Slowing global growth and dovish central banks’ twists, as seen this week, are no news. The trade war and Brexit either. However, the developments from this past week just confirmed that fears are largely justified.
The USD/JPY pair is the one suffering the most in this scenario, falling below the 110.00 level for the first time in over a month. Now trading at around 109.80, the pair bottomed for the day so far at 109.73. The next relevant support comes around 109.50, where the pair bottomed early February, followed by the 109.00 figure. The 110.00 figure is the first resistance, followed by the 110.40/50 price zone.