USD/JPY stays calm near 108 ahead of US data
|- 10-year US T-bond yield rises for the fifth straight day on Friday.
- China excludes agricultural products from additional tariffs on US goods.
- Coming up: US Retail Sales and Consumer Confidence data.
After closing the previous day above the 108 handle, the USD/JPY rose to its highest level since August 1 at 108.26 boosted by the upbeat market sentiment amid hopes of the US-China trade dispute coming to an end in next months high-level talks in Washington. However, the broad-based selling pressure surrounding the USD didn't allow the pair to extend its rally during the European trading hours. As of writing, the pair was down 0.07% on the day at 108.02.
Market sentiment improves on trade headlines
Commenting on reports claiming Trump administration was considering to offer China an interim trade deal, US President Donald Trump said that he'd rather get a "whole deal" done with China rather than an interim one. Furthermore, China’s State Council today announced that they will exclude some agricultural products including soybeans and pork from additional tariffs on US imports to further boost the optimism.
The 10-year US Treasury bond yield, which closed every day of this week in the positive territory, preserved its momentum and advanced to its highest level since August 5 to reflect the upbeat market sentiment. Meanwhile, the S&P 500 Futures is up 0.35% on the day, suggesting that Wall Street's main indexes are likely to start the day in the positive territory.
On the other hand, the Greenback's dismal performance against its European counterparts makes it difficult for the pair to stretch higher. Ahead of the Retail Sales and the University of Michigan Consumer Confidence data from the US, the US Dollar Index is down 0.3% on the day at 98.05.
Technical levels to watch for
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