- US dollar remains under pressure against majors as US yields continue to slide.
- Wednesday’s optimism fades, European markets and Wall Street post significant losses.
- US Sen. Elizabeth Warren is ending her presidential bid.
The USD/JPY pair dropped to 106.59, reaching the lowest level since October 3. It remains near the lows with the bearish tone intact, amid lower US yields and risk aversion.
DXY testing monthly lows
The greenback is falling against major but is holding firm versus commodity and emerging market currencies. While risk aversion weighs on riskier assets, lower US yields favour currencies like JPY, EUR and even today, GBP versus the USD.
The US Dollar Index (DXY) dropped to 96.91, reaching the lowest level in almost two months. Wednesday’s recovery was short-lived, and it is back under pressure. The 10-year yield recently hit a new record low at 0.927%. Risk aversion and expectation about more rate cut from the Federal Reserve fuels the rally in Treasuries.
Market participants mostly ignored data from the US. Initial jobless claims rose in line with expectations while Factory Orders in January declined by 0.5% (against the -0.1% reading expected). The critical report of the week will be released on Friday: the Non-farm payroll report.
In Wall Street, the Dow Jones is losing 2%, off lows now. In Europe, main indexes are about to close with declines of around 1.60% on average. The slide in stocks is helping the yen, that is among the top performers.
|Today last price||106.77|
|Today Daily Change||-0.74|
|Today Daily Change %||-0.69|
|Today daily open||107.51|
|Previous Daily High||107.69|
|Previous Daily Low||106.85|
|Previous Weekly High||111.68|
|Previous Weekly Low||107.51|
|Previous Monthly High||112.23|
|Previous Monthly Low||107.51|
|Daily Fibonacci 38.2%||107.37|
|Daily Fibonacci 61.8%||107.17|
|Daily Pivot Point S1||107.01|
|Daily Pivot Point S2||106.51|
|Daily Pivot Point S3||106.17|
|Daily Pivot Point R1||107.85|
|Daily Pivot Point R2||108.19|
|Daily Pivot Point R3||108.69|
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.