USD/JPY extends slide toward 108.50 as Brexit optimism fades


  • Concerns over UK parliament rejecting Brexit deal weigh on market sentiment.
  • US Dollar Index struggles to pull away from multi-week lows.
  • Upbeat earnings figures allow Wall Street to push higher on Thursday.

The USD/JPY pair climbed higher toward the 109 handle during the European Trading hours as the announcement of the Brexit deal made allowed risk-on flows to dominate the markets. However, concerns over the deal failing to receive enough support from parliament after the Democratic Unionist Party formally said that they will be rejecting the proposed agreement caused the market sentiment to turn sour and weighed on the pair, which was last down 0.15% on the day at 108.58.

In addition to the changing risk-perception, the broad-based selling pressure surrounding the Greenback on Thursday forced the pair to extend its losses.

Dismal data hurt the USD on Thursday

The data published by the Federal Reserve revealed that industrial production and the manufacturing production contracted by 0.4% and 0.5%, respectively, in September. Additionally, the US Census Bureau announced that housing starts in September fell 9.4%. As of writing, the US Dollar Index is at its lowest level since late August at 97.60, losing 0.4% on a daily basis.

Meanwhile, upbeat third-quarter earnings figures helped Wall Street's main indexes start the day on a positive tone despite the souring market sentiment. Nevertheless, investors are likely to stay close to safe-havens while waiting for the UK parliament to vote on the proposed Brexit deal on Tuesday.

 

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3141
Today Daily Change -0.0057
Today Daily Change % -0.43
Today daily open 1.3198
 
Trends
Daily SMA20 1.3266
Daily SMA50 1.3264
Daily SMA100 1.3234
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3238
Previous Daily Low 1.3184
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3204
Daily Fibonacci 61.8% 1.3217
Daily Pivot Point S1 1.3176
Daily Pivot Point S2 1.3153
Daily Pivot Point S3 1.3122
Daily Pivot Point R1 1.323
Daily Pivot Point R2 1.3261
Daily Pivot Point R3 1.3283

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

Euro rolling into the Asian session near one-month lows

The Fiber, on the daily chart, is trading in a downtrend below its main daily simple moving averages (DMAs). The Fiber was week on the second day of the week. The level to beat for bears is the 1.0995 support level.

EUR/USD News

GBP/USD: Doji on D1, lower highs setup portray Cable weakness

Not only lower highs since late-October but a bearish candlestick formation also portrays the GBP/USD pair’s weakness as it takes rounds to 1.2855 during the early Asian session on Wednesday.

GBP/USD News

USD/JPY supported at 10-DMA amid risk-off, eyes US CPI, Powell

USD/JPY bounced-off the10-DMA support near 108.85 and regained the 109 handle, despite the risk-off action in the Asian equities and US equity futures amid trade deal uncertainty. The bulls seem to have found some support from higher US Treasury yields. 

USD/JPY News

Gold fails to hold on to recovery amid USD strength, trade woes

Although pessimism surrounding the US trade relations with China and the EU, coupled with Hong Kong protests, favored Gold to bounce off multi-month lows on Tue, prices are again under pressure while taking rounds to $1,458 during today’s Asian session.

Gold News

UK inflation report outlook: GBP/USD may stumble on another CPI slide

Headline Consumer Price Index (CPI) has missed expectations in the past two months by standing at 1.7% annual. Economists seem to have adapted their expectations and forecast a further deceleration to 1.6% in October's inflation report. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures