USD/JPY clings to modest daily gains around 108.70, eyes on US PMI data
|- USD/JPY is posting modest daily gains on Wednesday.
- 10-year US T-bond yield turned positive on the day.
- IHS Markit's Manufacturing and Services PMI data coming up next.
The USD/JPY pair closed in the negative territory on Tuesday amid falling US Treasury bond yields but reversed its direction on Wednesday. As of writing, USD/JPY was up 0.15% on a daily basis at 108.75.
Recovering US T-bond yields support USD
The data published by the US Census Bureau revealed that Durable Goods Orders in February declined by 1.1%, compared to analysts' estimate for an increase of 0.8%. Although the initial market reaction to this data was largely muted, the benchmark 10-year US T-bond yield turned positive on the day in the early American session and helped the greenback gather strength. Currently, the US Dollar Index is up 0.19% on the day at 92.51.
Later in the session, the IHS Markit will release the preliminary Manufacturing and Services PMI figures for the US. Investors expect these data to reveal that the business activity in the US private sector continued to expand at a robust pace in March. Furthermore, New York Federal Reserve President John Williams will be delivering a speech at 1735 GMT.
In the meantime, the S&P 500 Futures are up 0.3% on the day, suggesting that the greenback could have a tough time outperforming its rivals if risk flows start dominating markets with US stocks starting the day in the positive territory.
Technical levels to watch for
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