- 10-year US Treasury bond yield gains more than 1%.
- S&P 500 and Dow Jones futures are both up 0.3%.
- US Dollar Index recovers Friday's losses, stays near 97.50.
The upbeat market mood at the start of the week made it difficult for the safe-haven JPY to find demand and helped the USD/JPY pair, which added nearly 150 pips last week, to continue to push higher. Although the pair seems to have lost its bullish momentum before testing the critical 110 handle, it continues to trade near 109.90, adding 0.4% on a daily basis.
Market sentiment turns positive on Monday
Hopes of the US and China quickly moving on to phase-two negotiations after signing the phase-one trade deal in Washington on Wednesday allow risk-on flows to dominate the markets. As of writing, the 10-year US Treasury bond yield is up more than 1% on the day and US stocks futures are pointing to a, yet another, opening at fresh all-time highs with the S&P 500 and the Dow Jones Industrial Average futures both rising 0.3% ahead of the opening bell.
There won't be any macroeconomic data releases from the US in the second half of the day and investors will stay focused on Wall Street's performance.
In the meantime, after closing the day 0.07% lower on Friday after the Nonfarm Payrolls growth in December fell short of the market expectation, the US Dollar Index recovered its losses and was last up 0.12% on the day at 97.46 to help the pair cling to its daily gains.
During the Asian session on Tuesday, Trade Balance, Bank Lending data and the Ecowatchers Survey from Japan will be looked upon for fresh impetus.
Technical levels to consider
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
AUD/USD recovers above 0.6750 after Australian jobs data
AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data.
USD.JPY jumps toward 144.00 on the road to recovery
USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday.
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low
Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.
Ethereum attempts recovery following first rate cut in four years
Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.