TRENDING:

XAU/USD

EUR/USD

USD/JPY plummets to lows, farther below 110.00 mark

Haresh Menghani FXStreet

• Global flight to safety strengthens JPY across the board.
• Sharp slide in US bond yields offset resurgent USD demand.
• All eyes remain glued to the latest FOMC meeting minutes.

The Japanese Yen continued benefitting from global flight to safety and dragged the USD/JPY pair back below the key 110.00 psychological mark.

The pair extended this week's retracement slide from 4-month tops, levels beyond the 111.00 handle, and came under some intense selling pressure on Wednesday amid a fresh wave of sell-off across global equity markets.

Geopolitical tensions resurfaced after the US President Donald Trump casted doubt on the upcoming historic summit with North Korea in June. Trump also tempered optimism over the progress made in the recent US-China trade talks and prompted a global wave of risk-aversion trade on Wednesday.

The risk-off mood was further evident from a sharp slide in the US Treasury bond yields, which seemed to have largely offset resurgent US Dollar demand and did little to stall the pair's slump back below the very important 200-day SMA resistance-turned-support.

Today's key focus would be on the release of latest FOMC meeting minutes, which would be looked upon for fresh clues over the central bank's near-term monetary policy outlook and eventually help determine the pair's next leg of directional move.

Technical levels to watch

A follow-through selling has the potential to continue dragging the pair further towards 109.50-40 horizontal support en-route the 109.00 handle. On the upside, any recovery attempt now seems confront fresh supply near the 110.00 handle and is followed by resistance near the 110.20 region (200-DMA).

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

USD/JPY plummets to lows, farther below 110.00 mark

Broker Reviews

Editor's Picks