- Dismal market mood helps JPY find demand on Wednesday.
- 10-year US Treasury bond yield erases more than 2%.
- US Dollar Index recovers to 98 area ahead of FOMC minutes.
The USD/JPY pair came under renewed bearish pressure on Wednesday with the JPY attracting investors as a safe-haven amid the ongoing uncertainty surrounding the United States (US)-China trade dispute. As of writing, the pair was trading at 108.42, down 0.1% on a daily basis.
Risk-off flows keep the pair under pressure
The US Senate has approved the Hong Kong human rights bill on Tuesday to escalate the political tension with China as sides are trying to come to terms on the trade agreement. Additionally, a Reuters report earlier on Wednesday suggested that US President Donald Trump was asking for deep concessions from China in order to agree to tariff rollbacks. Moreover, Trump reiterated his willingness to raise tariffs if they fail to reach a deal.
The 10-year US Treasury bond yield on Tuesday closed 1.9% lower and extended its slide on Wednesday to reflect the sour sentiment. As of writing, the yield was losing 2.35% on a daily basis and Wall Street’s main indexes’ futures were in the negative territory to point to a weak start to the day.
On the other hand, the US Dollar Index staged a technical correction to the 98 region to keep the pair’s losses limited for the time being. Later in the session, the Federal Open Market Committee’s (FOMC) October meeting minutes will be looked upon for fresh impetus.
Technical levels to consider
Share
