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USD/JPY Bounces 40 Pips from Meeting Lows despite Rally in Asian Stocks

  • USD/JPY turns around early losses to trade close to 105.50. 
  • Dollar’s recuperation looks puzzling in the wake of an uptick in Asian stocks. 
  • The US 10-year yield stays under tension close to 0.66%.

The safe haven American dollar is attracting offers. At press time, the currency pair is trading close to 105.50, having a 0.10% increase on the day.  During the early Asian exchanging hours, it traded lower at 105.10.

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While the specific reason behind the USD’s turnaround is unclear, the planning of the greenback’s recuperation has matched with the official announcement of Joe Biden as the Democratic candidate for the US Presidential elections in November. 

The dollar’s jump looks surprising also because Asian stocks have climbed to seven-month highs, following the S&P 500’s record close on Tuesday. The dollar has been treated as a haven currency since the start of the coronavirus crisis.

There are rumors that the Federal Reserve could soon signal greater capacity to bear above-target expansion. The minutes from the July 28-29 Federal Reserve meeting are scheduled for discharge at 08:00 GMT on Wednesday. The US yields are blazing red. As of writing, the 10-year yield is trading in the negative territory close to 0.66%, having lately hit a high of 0.73%. It is not yet clear if the greenback can keep and expand gains in Europe.

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