- Markets show little attention to the news/headlines from South Korea and the Bank of Japan (BOJ) amid overall upbeat sentiment.
- The US debt deal and trade positive catalysts please risk-takers.
- Second-tier US data, trade/political news will entertain short-term traders.
Despite recently released risk-sensitive news from South Korea and Bank of Japan (BOJ), not to forget on-going geopolitical tension concerning Iran, the USD/JPY pair remains modestly flash around 108.00 during early Tuesday.
South Korea recently fired a warning shot at Russian military plane while Bank of Korea (BOK) Governor Lee Ju-you reiterated support for losing monetary policy considering trade tussle with Japan.
It was also anticipated that the Bank of Japan (BOJ) will consider pre-emptive easing next week in order to achieve inflation target at the time Japanese Prime Minister Shinzo Abe’s recently victory further strengthens his call for October month tax hike.
Additionally, geopolitical tension concerning Iran continues despite the recent shift in the tone of the nation’s policymakers.
On the positive side, the US President Donald Trump’s readiness to fasten the process of allowing the license to do sell inputs to China’s Huawei brightens trade sentiment ahead of the next week’s US-China trade negations in Beijing. Furthermore, the lawmakers also agreed over a two-year debt/spending limit and further propelled the risk tone.
The US 10-year treasury yields gain nearly 1.5 basis points to 2.057% by the press time.
While trade/political headlines are likely to keep entertaining momentum traders, second-tier housing and manufacturing data from the US could offer intermediate trading opportunities to follow.
Technical Analysis
Unless successfully rising beyond 21-day exponential moving average (EMA) level of 108.07, chances of the pair’s run-up to 108.57/60 confluence comprising 50-day EMA and 2-month old descending trend-line seems less likely. As a result, 107.80 and 107.20 can keep being on sellers’ radar.
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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.