- USD/JPYbears take control and bust down below the 200-hour MA.
- It was Brexit stealing the show overnight, weighing on US yields and risk.
USD/JPY has been grinding slightly lower from 108.60 to 108.45 prior to the open in Tokyo but there has been a burst of energy from the bears with Yen picking up a bid across the board. USD/JPY is currently trading down -0.13% at the time of writing having travelled from a high of 108.51 to a low of 108.25.
From a fundamental basis, it was Brexit stealing the show once again overnight and trade-war and Middle East war headlines were taking a backseat to the commotion in the UK Parliament.
"The quick take is that PM Johnson’s bill won parliamentary support in principle but the government’s timetable of just 3 days debate on the bill was rejected. Johnson will now meet once more with EU leaders to discuss the timetable and an early election is increasingly likely, but with Brexit delayed beyond the election. Key for markets is that a no-deal Brexit remains unlikely," analysts at Westpac explained.
In the aftermath of all of that, EU's Tusk announced that he will recommend the EU accept a UK request for an extension out to January 31 2020. While a no-deal Brexit remains unlikely, UK politics, is as ever, up in the air and likely to keep risk at bay. However, on evidence compounds that a no deal Brexit is off the table, a relief in markets should be seen through a rally in the Pound and a softer Yen.
US data and US yields in focus
As for data overnight, in the US, the Oct Richmond Fed manufacturing survey rose firmly to +8 (est. -7, prior -9). "Gains were broad-based with noted lifts in employment and new orders with expectations edging higher in addition to stronger current conditions. US Sep existing home sales slid -2.2%m/m (est. -0.7%m/m). However, at 5.38mn (est. 5.45mn) the annualised level remains close to post record highs and NAR’s chief economist continues to cite a shortage of stock/supply," the analysts at Westpac explained.
US 2-year Treasury yields were moving between 1.59% and 1.63 while the 10-year yield travelled between 1.76% and 1.80%. "Markets are pricing 22bp of easing at the 30 October meeting and a terminal rate of 1.24% (vs 1.88% currently)," the analysts at Westpac noted.
|Today last price||108.34|
|Today Daily Change||-0.14|
|Today Daily Change %||-0.13|
|Today daily open||108.48|
|Previous Daily High||108.73|
|Previous Daily Low||108.44|
|Previous Weekly High||108.94|
|Previous Weekly Low||108.03|
|Previous Monthly High||108.48|
|Previous Monthly Low||105.74|
|Daily Fibonacci 38.2%||108.55|
|Daily Fibonacci 61.8%||108.62|
|Daily Pivot Point S1||108.37|
|Daily Pivot Point S2||108.26|
|Daily Pivot Point S3||108.08|
|Daily Pivot Point R1||108.66|
|Daily Pivot Point R2||108.84|
|Daily Pivot Point R3||108.95|
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.