USD/JPY ignores Japan policymakers’ push for two-week extension of Tokyo’s covid-led emergency
|Although the Japanese government recommended a two-week extension to Tokyo’s coronavirus (COVID-19) emergency measures, USD/JPY stays strong near the eight-month top of 108.00 during the initial Asian session on Friday.
The reason could be traced from the US dollar’s broad rally amid the bond bears’ dominance following Fed Chair Jerome Powell’s speech. Even if the Fed boss considered the recent run-up in yields being less strong to push the Fed towards any policy change, global market players seemed to be concerned about the reflation fears amid expected inflation of funds. The reason could be traced from progress in the US covid relief bill voting in the American Senate as well as the UK’s latest budget.
That said, the US 10-year Treasury yields refreshed the highest since February 2020 while flashing a 1.57% mark by the end of Thursday’s North American session.
Moving on, USD/JPY traders may witness a lack of momentum amid the typical pre-NFP trading lull and a light calendar in Asia.
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