- USD/JPY gained traction during the American trading hours.
- 10-year US Treasury bond yield is up 2% on Thursday.
- US Dollar Index continues to fluctuate in a relatively tight range.
The USD/JPY pair retreated to 109.40 area in the early American session on Thursday but managed to regain its traction. As of writing, the pair was up 0.23% on the day at 109.72.
USD/JPY capitalizes on rising US T-bond yields
The decisive rebound witnessed in the US Treasury bond yields seems to be helping USD/JPY push higher during the American trading hours. The benchmark 10-year US T-bond yield, which suffered heavy losses earlier in the week, is currently rising 2% on a daily basis.
Earlier in the day, the data from the US showed that the Initial Jobless Claims edged lower to 385,000 in the week ending July 31 from 399,000. Additionally, the US Census Bureau reported that the goods and services deficit widened to $75.7 billion in June from $71 billion in May. Nevertheless, investors largely ignored these readings and the US Dollar Index continues to move sideways around 92.20.
In the meantime, Wall Street's main indexes are up between 0.35% and 0.5% on Thursday, making it difficult for the safe-haven JPY to find demand as a safe-haven.
On Friday, the US Bureau of Labor Statistics' July labour market report will be watched closely by market participants. Previewing the Nonfarm Payrolls (NFP) data, "the greenback has room to fall only if the increase in jobs is considerably below estimates, but not catastrophic," said FXStreet analyst Yohay Elam.
Nonfarm Payrolls Preview: Why the dollar could surge in (almost) any scenario.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends gains above 1.0750, focus shifts to German inflation data
EUR/USD extends gains above 1.0750 in European trading on Monday. The Euro gains as France's far-right National Rally (RN) party sweeps the first round of elections. Meanwhile, the US Dollar stays offered on renewed Fed rate cut bets. Focus shifts to German inflation and US PMIs.
GBP/USD rises further toward 1.2700, US PMI data eyed
GBP/USD rises further toward 1.2700 in the European session on Monday. The US Dollar remains weighed down by dovish Fed expectations and the EUR/USD upsurge, keeping the pair underpinned ahead of the US ISM PMI data.
Gold price struggles for a firm intraday direction ahead of US PMI data
Gold price oscillates in a narrow trading band on Monday amid mixed fundamental cues. Rising bets for a September Fed rate cut weigh on the USD and lend support to the metal.
Bitcoin is breaking above the falling wedge
Bitcoin breaking above the falling wedge pattern on Monday signals a bullish move, with Ethereum and Ripple poised to follow as they find support at key levels, paving the way for an upside rally in the days ahead.
French election: Public spending is not set to rise significantly
Initial projections, alongside statements from Macron and Melenchon on Sunday, indicate that the most probable outcome is that no party will achieve an absolute majority, resulting in a 'hung parliament'.