- Greenback preserves its strength following last week's climb.
- US bond and stocks markets are closed due to Labor Day holiday.
- Europen stocks indexes post modest gains on Monday.
The USD/JPY pair, which slumped to its lowest level since late 2016 last Monday, closed the week with a gain of more than 100 pips supported by recovering US Treasury bond yields amid easing concerns over a prolonged US-China trade conflict and a broadly stronger USD. With the markets starting the new week in a relatively calm manner, the pair inched higher and was last seen trading at 106.35, adding 0.05% on the day.
Upbeat sentiment helps USD/JPY stay in green
Last week, both sides in the US-China trade war called for "calm negotiations" with an aim to resolve the trade differences without escalating the conflict any further. Although the Trump administration's tariff hike went into effect yesterday, the fact that the US bond and stock markets are closed due to the Labor Day holiday didn't allow a sharp shift in the market sentiment.
In fact, with the UK's FTSE 100 leading the way with a daily gain of more than 1%, major equity indexes in Europe are posting modest gains to reflect the risk-on environment.
Additionally, the data from China during the Asian session showed that the business activity in the manufacturing sector expanded at a better pace than expected with the Caixin Manufacturing PMI coming in at 50.4 and beating the market expectation of 49.8.
On the other hand, the uncertainty surrounding Brexit talks and expectations over the introduction of an aggressive stimulus package by the European Central Bank later this month push investors away from major European currencies and help the Greenback continue to find demand. As of writing, the US Dollar Index is moving sideways above the 99 mark, staying near the 27-month high that it set at 99.10 earlier today.
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 drops below 1.0450 as USD gathers strength
EUR/USD stays on the back foot and trades below 1.0450 on Wednesday. The cautious market stance helps the US Dollar (USD) stay resilient against its rivals and weighs on the pair as markets wait for the Federal Reserve to publish the minutes of the January policy meeting.

Gold climbs to new all-time high near $2,950
Gold retreats slightly from the all-time high it touched at $2,947 but manages to stay above $2,930 on Wednesday. The benchmark 10-year US Treasury bond yield clings to modest gains above 4.55%, limiting XAU/USD's upside.

GBP/USD retreats below 1.2600 despite strong UK inflation data
GBP/USD struggles to hold its ground and trades in the red below 1.2600 on Wednesday. Earlier in the day, the data from the UK showed that the annual CPI inflation climbed to 3% in January from 2.5% in December. Market focus shifts to FOMC Minutes.

Maker Price Forecast: MKR generates highest daily revenue of $10 million
Maker (MKR) price extends its gains by 6%, trading around $1,189 on Wednesday after rallying more than 20% so far this week. Artemis data shows that MKR generated $10 million in revenue on February 10, the new yearly high in daily revenue.

Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK
We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.