- 10-year US Treasury bond yield posts small daily losses on Tuesday.
- Markets await fresh developments surrounding US-China trade negotiations.
- Wall Street’s main indexes look to open flat.
Following a spike to a fresh two-week high of 109.19 during the Asian trading hours, the USD/JPY reversed its course and turned flat on the day near 108.90 with the trading action turning subdued in the absence of significant fundamental developments.
Reports suggesting that the US and China have reached an agreement on tariff rollbacks as part of phase one of the trade deal provided a boost to the market sentiment during the Asian trading hours and made it difficult for the safe-haven JPY to find demand.
Nevertheless, after rising for four straight days, the 10-year US Treasury bond yield stays relatively calm on Tuesday, suggesting that investors are opting out to remain on the sidelines. Furthermore, the S&P 500 futures are struggling to find direction, pointing out to a flat start in Wall Street’s main indexes.
US data likely to impact pair’s movements
During the American session, Goods Trade Balance and New Home Sales data from the US will be looked upon for fresh impetus. Additionally, the Conference Board will publish its Consumer Confidence Index, which is expected to show an improvement from October, for November. Ahead of these data releases, the US Dollar Index is moving sideways near the 98.30 mark.
On Wednesday, investors will be paying close attention to the US Bureau of Economic Analysis’ second estimate of the third-quarter Gross Domestic Product (GDP) growth data.
Technical levels to watch for
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