USD/JPY drops toward 105.00 as Trump, Biden answer questions
- USD/JPY defies recovery moves from 105.32 to refresh intraday low with 105.28.
- US President Donald Trump, Presidential Candidate Joe Biden answer questions in the “town hall” style.
- NBC is mostly blamed for interrupting Trump before he answers, Biden managed to garner praise on ABC.
- Japan press earlier reported rejecting US proposals to raise bars for Chinese telecommunication companies.
USD/JPY bounces off 105.28 to 105.35, following the early-day downbeat move to 105.32, amid the initial hour of Tokyo open on Friday. The pair recently gained as markets spot difference in US President Trump’s comments versus reality on the coronavirus (COVID-19) relief bill. This follows the pair’s upbeat performance on Thursday that took hints from the broad US dollar strength amid a risk-off mood.
Risks dwindle even as Trump tries to placate bears…
Although NBC’s Savannah Guthrie tried to disturb Mr. President multiple times during the question and answer session, the White House leader blew all barriers while suggesting that the stimulus deal between US House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin will arrive for a vote soon.
On the other hand, Biden keeps his calm attitude to answer the questions and is mostly welcomed in the initial approach, shown on Abc news. The New York Times mentioned, “Former Vice President Joseph R. Biden Jr. said he would take a coronavirus vaccine if one became available by the end of the year.”
Elsewhere, Japan’s Yomiuri conveyed early in Asia that Tokyo Informed the US it won't participate in the Trump administration's plan to exclude Chinese firms from telecommunications networks. This should ideally help the risk-tone sentiment, as it favored the S&P 500 Futures, but couldn’t help the Asia-Pacific stocks as Nikkei 225, ASX 200 and NZX 50 are all in the mildly red shades by the time of writing.
It should be noted that the fears of worsening virus conditions and increasing odds for no COVID-19 aid package from the US have earlier weighed down the market sentiment on Thursday. Europe marked the biggest weekly surge in pandemic numbers whereas cases in Wisconsin also suggest a wider than initially feared wave of the deadly virus.
Although Trump-Biden chatter can offer intermediate direction to the pair, major attention will be given to the virus updates and the stimulus news amid a light calendar in Asia.
Technical analysis
Buyers keep struggling to break the 105.50/55 upside barrier while targeting the monthly peak surrounding 106.10. Alternatively, sellers look for entries below 104.90.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
