- US Pres. Trump says trade deal with China is "potentially very close."
- Upbeat Manufacturing PMI and UoM Consumer Sentiment data boost USD.
- US Dollar Index climbs to fresh weekly highs near 98.20.
After edging down to 108.50 area in the early trading hours of the American session, the USD/JPY pair reversed its direction and advanced to a fresh daily top of 108.73 but seems to be having a difficult time stretching higher as investors continue to react developments surrounding the United States (US)-China trade dispute.
Earlier in the day, US President Donald Trump said a trade deal with China was "potentially very close" to cause safe-haven assets such as the JPY to lose interest. The 10-year US Treasury bond yield, which lost as much as 2% earlier in the day, erased almost all of its losses on Trump's comment.
However, following a Reuters report suggesting that all five commissioners of the US Federal Communications Commission (FCC) will vote to bar Chinese telecommunication giant Huawei and ZTE from government subsidy programs, the 10-year US T-bond yield lost its traction and was last down 1% on the day, suggesting that risk sentiment has started to sour on this headline.
Reflecting the shift in the market mood, the USD/JPY pair turned flat on the day near 108.60 and is looking to close the second straight week in the negative territory.
USD strength helps pair stay above 108.50
On the other hand, the IHS Markit's Manufacturing Purchasing Managers' Index (PMI) rose to 52.2 in November's preliminary reading to surpass the market expectation of 51.5 and provided a boost to the greenback. Additionally, the University of Michigan's Consumer Sentiment Index improved to 96.8 in November to support the US Dollar Index, which was last up 0.25% on the day at 98.20.
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. 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
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.