USD/JPY steadies below 109 as markets turn quiet ahead of key macro events
|- US Dollar Index turns south following last week's upsurge.
- Heightened geopolitical tensions in Hong Kong weigh on the sentiment.
- US bond markets will be closed on Monday.
The USD/JPY pair registered its highest weekly-close since mid-May at 109.28 last Friday but failed to preserve its bullish momentum on Monday. As of writing, the pair was trading at 108.95, losing 0.3% on a daily basis.
Violent demonstrations that saw police and protestors clash in Hong Kong over the weekend seem to be weighing on the market sentiment as it could be assessed as a factor that might play a role in the United States (US)-China trade negotiations.
Markets are likely to stay calm ahead of key events
Reflecting the souring market mood, major European equity indexes are posting losses on Monday and the safe-haven JPY is gathering strength against its peers. The bond markets in the US will be closed on Monday due to Veterans Day and the pair is likely to remain quiet in the second half of the day.
Tuesday's macroeconomic calendar won't be featuring any significant macroeconomic data releases. Wednesday's inflation report from the US and Federal Open Market Committee (FOMC) Chairman Jerome Powell's two-day testimony that will also start on Wednesday will be looked upon for fresh catalysts.
Technical levels to watch for
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