- 10-year US Treasury bond yield registers modest gains.
- Wall Street looks to open in positive territory.
- US Dollar Index stays above 97.80 ahead of PMI data.
The USD/JPY pair lost more than 100 pips this after rising to its highest level since May at 110.30 last Friday as heightened fears over coronavirus spreading and becoming a global epidemic allowed JPY to find demand as a safe-haven. With the market sentiment improving slightly, however, the pair recovered a small portion of its weekly losses on Friday and was last up 0.12% on the day at 109.62.
Risk aversion softens on Friday
On Thursday, the World Health Organisation's (WHO) director-general, Tedros Adhanom Ghebreyesus, noted that coronavirus has not yet become a global health emergency and added that they were not yet recommending any broader restrictions on travel or trade. Additionally, "it's still too early to draw conclusions on how severe the virus is," a spokesman for the WHO said on Friday, to help the market sentiment improve.
The 10-year US Treasury bond yield, which closed the last three days in the negative territory, was last up 0.3% on the day and the S&P 500 futures were adding 0.25% to suggest that Wall Street's main indexes are likely to start the day in the positive territory.
In the meantime, the US Dollar Index is edging higher toward the 98 mark ahead of the IHS Markit's Manufacturing and Services PMI data later in the session to keep the bullish momentum intact.
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.