- Wall Street's main indexes hit new all-time highs.
- US Dollar Index stretches higher toward 99 on Wednesday.
- 10-year US Treasury bond yield adds more than 1%.
The USD/JPY pair spent the Asian session in a tight range below the 110 handle but gained traction during the European morning and touched its highest level in more three weeks at 110.14. Although the pair lost its momentum after the initial upsurge, it remains on track to close the day modestly higher near 110.
Risk rally continues
The positive market sentiment on Wednesday seems to be weighing on the demand for traditional safe-havens such as the JPY. The official data from China showed that, as of Wednesday morning, the growth rate of new coronavirus infections fell to the lowest level since late January. Moreover, China's National Health Commission (NHC) announced that the recovery rate from infections rose to 10.6% from 1.3% on January 27th.
Major European equity indexes closed the day decisively higher and Wall Street's main indexes hit fresh all-time highs to reflect the strong risk appetite. Additionally, the 10-year US Treasury bond yield, which closed the previous day 1.4% higher, extended its recovery and was last up 1.8% on the day at 1.626%.
In the meantime, the poor performance of major European currencies during the American session provided a boost to the greenback and helped the pair stay in the positive territory. The US Dollar Index was last seen testing the 99 handle, adding 0.22%.
Producer Price Index (PPI) will be the only data featured in the Japanese economic docket on Thursday.
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 holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.