FX Action: USD-JPY lifted back above 109.00.
FX Action: USD-JPY lifted back above 109.00 from yesterday's correction low at 108.54, but has so far left yesterday's 10-week peak at 109.20 untroubled. Ditto for EUR-JPY. Stock markets in Asia have been broadly lower following declines on Wall Street, with investors digesting higher yields -- the 10-year T-note finally touched the 3.0% level (and first time here since early 2017) -- and doubts about earnings growth. The S&P 500 closed out yesterday with a 1.3% loss, while the Nikkie 225 was showing a 0.3% loss in the late PM Tokyo session. This backdrop has likely curtailed yen selling, according to market narratives. In data, Japan's February industry activity index came in with 0.4% m/m growth, slightly below the median forecast for 0.5%. USD-JPY has been trending higher for a month now, from sub-105.00 levels. The dynamic has been concomitant with rising U.S. yields, with looser fiscal policy having given added underpinning to Fed tightening expectations. This comes with the BoJ continuing to peg JGB 10-year yields near 0.0%. Demand for foreign assets by Japanese life insurers has been a factor propping USD-JPY up so far in the new fiscal year, while an abatement in concerns about trade tensions and cooling relations on the Korean peninsular have also been in the mix. Overall, analysts advise following the trend in USD-JPY for now. Support comes in at 108.40-42.
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 25, 2018|
|Previous Article:||AT&T lawyer grills star U.S. witness over data in pay-TV study, Bloomberg says.|
|Next Article:||FX Update: The dollar picked up from correction lows.|