USD/JPY climbs to 4-day tops above 108.30, retreats on Trump comments
|- The 10-year US Treasury bond yield gains nearly 2% on Tuesday.
- US Dollar Index extends the rebound in the NA session.
- US Pres. Trump says they have a long way to conclude trade talks with China.
The USD/JPY pair gained traction in the second half of the day and rose to a fresh session high of 108.36. However, with U.S. President Donald Trump's latest remarks on the U.S.-China trade conflict weighed on the market sentiment and caused the pair to lose its momentum. As of writing, the pair was up 0.3% on the day at 108.20.
Earlier today, the data published by the U.S. Census Bureau showed that retail sales in June increased by 0.4% to beat the market expectation of 0.1% to help the greenback outperform its major rivals. Moreover, following Monday's technical drop, the 10-year US Treasury bond yield gained traction and was last up nearly 2% on the day to provide an additional boost to the positively-correlated pair.
On the other hand, commenting on the U.S.-China trade conflict, President Trump said they still had a long way to go before concluding the negotiations and added that they could start imposing tariffs on additional $325 billion worth of Chinese goods. Major equity indexes in the U.S. turned south on these remarks and allowed safe-havens to show resilience vs the greenback.
Later in the session, investors will be paying close attention to FOMC Chairman Powell's remarks. Chicago Fed President Charles Evans is scheduled to deliver a speech before the end of the day as well.
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.