USD/JPY inter-markets: awaits Trump to resume prior appreciating move?
|The USD/JPY pair failed to build on previous session's tepid recovery bounce and remained under some renewed selling pressure on Tuesday as market participants look forwards to the US President Donald Trump's speech.
The pair struggled to hold overnight gains led by renewed expectation for a Fed rate-hike action at its upcoming meeting in March after hawkish comments from the Dallas Fed President Robert Kaplan.
The pair’s latest leg of weakness has been primarily led by a fresh wave of fall in the US treasury bond yields. This coupled with a slide in the JGB yields, and a minor up-tick in the Volatility Index (VIX), pointed towards cautious investors' sentiment, which supports the Japanese Yen's safe-haven appeal, and collaborated to the pair's offered tone on Tuesday.
The selling pressure seems to have abated near 112.25 level as investors preferred to wait on the sideline until details about Trump's proposed pro-growth economic policies emerge from his first address to a joint session of Congress, later during the day.
Any additional details pertaining to the fiscal stimulus measured and tax plans would result to sharp rise in the US Treasury bond yields and eventually making it easier for the major to resume with its prior appreciating move.
Also watch: Live Stream – President Trump interviewed by Fox News
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