USD/JPY slides to session lows within narrow range as US dollar melts
- USD/JPY bears taking the reins as the dollar slides.
- The clock is ticking, US stimulus talks will continue later today.
USD/JPY is about flat on the day at 105.39 at the time of writing. The US dollar has been bleeding out which is giving the bears the edge, however.
The US stimulus saga continues and it is up in the air just as it ever was.
The US House Speaker Pelosi said she’s optimistic a deal could be reached, but there is no realisation of such sentiment. The clock is ticking, yet talks will continue later today.
Senate Majority Leader McConnell said if a comprehensive stimulus package comes to the Senate that has been passed by the House and is backed by President Trump, “we would consider it”.
Meanwhile, the Republican Senator Thune said that “it would be hard” to find enough GOP members to back a $1.8 trillion stimulus and an after the bell comments from the White House chief of staff Mike Meadows said the sides still had a way to go.
US 2-year Treasury yields remained around 0.15%, while the 10-year yield rose from 0.76% to 0.79%.
Meanwhile, global COVID-19 case numbers have now topped 40 million which is keeping risk appetite at bay.
''The recent resurgence putting pressure on European policymakers to intensify restrictions, and in the US ensuring that COVID-19 remains front and centre as the election approaches,'' analysts at ANZ Bank explained.
''Large swathes of the UK are now under the most severe Tier 3 rules, feeding expectations of additional monetary policy easing.''
USD/JPY levels
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
