- USD/JPY holds onto recovery gains from 108.60.
- The latest coronavirus updates from the US, comments from the Fed’s Kaplan weigh on the market’s risks.
- Optimism surrounding the US Presidential election, expectations of further stimulus offered risk-on the previous day.
- Comments from BOJ’s Kuroda in immediate focus ahead of US economics, virus updates remain as the key.
While extending its recovery moves from the recent low of 108.60, USD/JPY rises to 108.90 ahead of the Tokyo open on Thursday. The yen pair earlier cheered the market’s risk-on sentiment amid expectations of further stimulus and an easy run for the favorite candidate for the US President’s post.
Not only the Reuters’ poll suggesting the BOJ’s another easing but comments from the US and Japanese policymakers also signaled that more stimulus to counter the coronavirus (COVID-19) is on their way.
On the other hand, Bernie Sanders stepped back from the US Presidential Candidate’s race, giving an edge to the market favorite Joe Biden and helping to brighten the trading sentiment.
Elsewhere, the coronavirus updates have been murky off-late with the US data pushing it near to the global leader Italy, as far as the death toll is concerned, while Reuters also citing chances of data being higher than what’s already reported.
It should also be noted that the Dallas Federal Reserve Bank President Robert Kaplan recently said that the US economy will recover in the second half of 2020 after shrinking 25-35% during the second quarter (Q2).
Furthermore, US President Donald Trump reiterated its calls to reopen the economy in phases, putting his hotels first, while also thanking the Indian PM Narendra Modi for availing the help to combat the pandemic.
Amid all these, the US stock futures open in negative, despite the upbeat performance of Wall Street and the US 10-year Treasury yields, by the press time.
Moving on, the Bank of Japan (BOJ) Governor Haruhiko Kuroda Due to deliver brief remarks at a BOJ branch manager's meeting at 00:30 GMT and will be observed for any calls of further easing. Following that, the market may await the US Jobless Claims data amid recently jumping figures whereas Producers Price Index (PPI) and Michigan Consumer Sentiment could add a burden on the traders.
Technical analysis
Sustained trading beyond the key SMAs keeps bulls hopeful to challenge the March month high surrounding 111.75. However, 109.40 and 110.00 can act as intermediate halts.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold price on the defensive, amid soft US Dollar
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.