USD/JPY jumps above 107.50 boosted by renewed trade optimism
|- US Treasury Sec. Mnuchin claims trade deal is 90% complete.
- Commerce Sec. Ross says the U.S. is hoping to get a reasonable deal with China.
- Wall Street looks to open in green, 10-year T-bond yield extends recovery.
After posting losses on Monday and Tuesday, the USD/JPY pair gained traction on Wednesday and rose to its highest level in a week at 107.75 boosted by improved market sentiment. As of writing, the pair was trading at 107.70, adding 0.5% on a daily basis.
Earlier in the day, U.S. Treasury Secretary Mnuchin claimed that the U.S.-China trade deal was 90% complete but refrained from giving any information on the possible timing of the deal. Additionally, during an interview with Fox Business Network, Commerce Secretary Ross said that the U.S. was looking to make get a "reasonable deal" with China.
As of writing, the 10-year US Treasury bond was up more than 1.5% on the day and the S&P 500 Futures was adding 0.4% to suggest that Wall Street is looking to start the day on a strong footing, both confirming upbeat market sentiment.
Goods trade balance, durable goods orders, and wholesale inventories from the U.S. will be looked upon for fresh impetus in the second half of the day. Yesterday, St. Louis Fed President Bullard argued against a 50 basis points rate cut in July helped the greenback to stage a modest recovery. Upbeat data are likely to provide additional support to the US Dollar Index, which was last seen posting small daily gains above 96.20, and lift the pair toward the 108 handle.
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.