- USD/JPY registers a three-day winning streak above 108.00.
- The King Dollar remains as the key beneficiary of the global rush to ward off coronavirus impact.
- The cases rise, more measures in the pipeline from the US, ECB announces a huge package.
- BOJ minutes, Japan’s National CPI can offer immediate direction, virus headlines keep the driver’s seat.
With the broad risk-aversion wave pumping the US dollar, USD/JPY remains on the front foot near 108.10, close to the three-week high, amid the initial Asian session on Thursday.
King Dollar cheers the rush to hoard cash…
With the multibillion-dollar stimulus packages out in every few hours, ECB’s 750 billion Euro bundle being the latest one, the rush to hoard cash in the US dollar remains strong.
The reason could be traced from the greenback’s status as the global reserve currency as well as joint efforts by the key global central bankers in the form of dollar-denominated swaps that have been helping the US currency off-late.
Speculations are also mounting that the Japanese government will soon reveal plans for its 30 trillion yen government stimulus package to counter the deadly virus.
That said, the risk-tone remains heavy despite the major fight against the coronavirus (COVID-19). The pandemic has so far infected 2,14,000 people across the globe with the latest outbreak being fierce in the UK and Italy.
Even so, the US 10-year treasury yields remain positive beyond 1.0% whereas equity futures consolidate losses after Wall Street continued the recent south-run by the end of their Wednesday’s trading session.
Investors will now concentrate on the BOJ minutes as well as Japan’s February month National Consumer Price Index (CPI) data for immediate direction. However, the virus updates and major attention will continue to be the key catalyst.
Technical Analysis
A sustained rise above late-January low near 109.30 can accelerate the north-run to 109.60 and 110.00 while the pair’s declines below October 2019 bottom surrounding 106.50 can trigger a fresh downside.
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 holds gains near 1.0900 amid weaker US Dollar
EUR/USD defends gains below 1.0900 in the European session on Monday. The US Dollar weakens, as risk sentiment improves, supporting the pair. The focus remains on the US political updates and mid-tier US data for fresh trading impetus.
GBP/USD trades sideways above 1.2900 despite risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the European session on Monday. The pair fails to take advantage of the recovery in risk sentiment and broad US Dollar weakness, as traders stay cautious ahead of key US event risks later this week.
Gold price remains on edge on firm prospects of Trump’s victory
Gold price exhibits uncertainty near key support of $2,400 in Monday’s European session. The precious metal remains on tenterhooks amid growing speculation that Donald Trump-led-Republicans will win the US presidential elections in November.
Solana could cross $200 if these three conditions are met
Solana corrects lower at around $180 and halts its rally towards the psychologically important $200 level early on Monday. The Ethereum competitor has noted a consistent increase in the number of active and new addresses in its network throughout July.
Election volatility and tech earnings take centre stage
/stock-market-graph-gm532464153-55981218_XtraSmall.jpg)
The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.