Yen traders hold their breath as Yen races to the bottom [Video]
|The selloff in Japanese yen extended yesterday sending the currency to the lowest levels since 1986 against the US dollar and to the lowest levels against the euro. A direct FX intervention is expected at any time. Elsewhere, the euro remains under the pressure of French political shenanigans and Cable clears important technical supports as the Australian dollar is among rare major currencies that challenge the dollar’s strength, after the Australian inflation hit 4% in May.
One thing that could derail the US dollar’s positive trajectory this week is economic data. Due today, the US will reveal its latest GDP update, and tomorrow we will have a look at the core PCE – the Federal Reserve’s (Fed) favourite gauge of inflation.
In equities and bonds, the US 2-year yield was slightly higher yesterday, the 5 and 10-year yields rose to the highest levels in two weeks despite a good 5-year bond auction as the rising Japanese yields rose anxiety among bond investors, but not among stock buyers. The S&P500 and Nasdaq closed slightly higher on Wednesday thanks to a late rally, as Amazon hit a record high.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.