- Reuters reports that US and China may not complete the trade deal this year.
- 10-year US Treasury bond yield erases more than 2%.
- US Dollar Index stays near 98 ahead of FOMC minutes.
After advancing to a fresh daily high above the 108.70 mark, the USD/JPY pair lost its traction as the latest headlines surrounding the United States (US)-China trade dispute triggered fresh risk-off flows and ramped up the demand for safe-haven JPY. As of writing, the pair was flat on the day at 108.52.
JPY capitalizes on US-China trade pessimism
Citing experts on trade and people close to the White House, Reuters on Wednesday reported that the trade deal with China could slip into next year. Although the article further noted that December rate hikes could be suspended if talks go well, the 10-year US Treasury bond yield turned south to reflect the flight to safety. At the moment, the 10-year T-bond yield is down 2.7% on a daily basis. Additionally, Wall Street's three main indexes are all down between 0.8% and 1.2%.
On the other hand, the greenback stays relatively resilient against its other major rivals despite the shift in the market mood with the US Dollar Index staying in its daily range near the 98 handle.
The Federal Open Market Committee (FOMC) will publish the minutes of its October meeting at the top of the hour and investors will be looking for fresh clues regarding the near-term policy outlook.
Technical levels to watch for
|Today last price||108.53|
|Today Daily Change||-0.02|
|Today Daily Change %||-0.02|
|Today daily open||108.55|
|Previous Daily High||108.84|
|Previous Daily Low||108.45|
|Previous Weekly High||109.3|
|Previous Weekly Low||108.23|
|Previous Monthly High||109.29|
|Previous Monthly Low||106.48|
|Daily Fibonacci 38.2%||108.6|
|Daily Fibonacci 61.8%||108.69|
|Daily Pivot Point S1||108.39|
|Daily Pivot Point S2||108.22|
|Daily Pivot Point S3||108|
|Daily Pivot Point R1||108.78|
|Daily Pivot Point R2||109|
|Daily Pivot Point R3||109.17|
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.