- USD/JPY continues to decline on Wednesday for the straight second day.
- US Dollar Index remains pressurized near 92.00 on mixed economic data, Fed’s dovish outlook.
- The yen gains on its safe-haven appeal despite rising coronavirus cases in Japan.
USD/JPY extends the losses in the initial Asian trading session on Wednesday. The sluggish movement in the US dollar sponsors the lacklustre performance of the pair.
At the time of writing, USD/JPY is trading at 109.05, down 0.01 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades near 92.00 and hovering in the same trading range since the beginning of the August month series.
Fed’s dovish outlook and fears of slowing US economic growth negatively impacts the USD’s valuation. The rapid spread of the Delta variant offset strong corporate results.
As per the latest reports, the COVID-19 hospitalization in the US reached 50k for the first time since February.
The ISM Manufacturing Purchase Manager Index (PMI) came lower at 59.5 in July, whereas the Factory Orders surged 1.5% in June, beating the market consensus of 1%.
On the other hand, the Japanese yen held the ground on its safe-haven appeal as investor’s risk appetite dampens on rising coronavirus infections. The Japanese government imposed a state of emergency in Tokyo until after the Olympics games end on August 8.
Meanwhile, the escalating geopolitical tension in middle-east after a tanker ship in the Gulf of Oman was seized by suspected Iranian gunmen spooked investors. This, in turn, results in the fund flow toward safer yen.
As for now, investors wait for US ADP Employment change to gauge the market sentiment.
USD/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD drops below .0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure to trade below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% on a monthly basis in February. Resurgent US Dollar demand is adding to the downside in the pair.
GBP/USD stays depressed below 1.2650 amid market caution
GBP/USD remains defensive below 1.2650 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.