“¢ The global flight to safety continues to underpin the Japanese Yen and exert pressure.
“¢ Declining US bond yields does little to support the USD/stall the ongoing downfall.
“¢ Traders now eye Powell’s speech/US macro data for some short-term impetus.
The safe-haven Japanese Yen remained well bid on Thursday, dragging the USD/JPY pair further below the key 110.00 psychological mark to fresh six-week lows.
Renewed concerns about the escalating US-China trade conflicts continued weighing on investors’ sentiment, which was evident from another day of sharp losses in Asian equity stock markets on Thursday and benefitted the Japanese Yen’s relative safe-haven status.
This comes on the back of the US President Donald Trump’s recent announcement that he will hike tariffs on $200 billion worth of Chinese goods to 25% from the current 10% if an agreement was not met before Friday, reviving fears of a full-blown US-China trade war.
The risk-off mood was further reinforced by the ongoing slide in the US Treasury bond yields, which kept the US Dollar bulls on the defensive and did little to lend any support or stall the pair’s ongoing slide to the lowest level since March 25.
Moving ahead, today’s US economic docket – featuring the release of April PPI figures, March trade balance data and the usual initial weekly jobless claims, along with a scheduled speech by the Fed Chair Jerome Powell will now be looked upon for some fresh impetus later during the early North-America session.
Technical levels to watch
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