USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields
- Political jitters in the US weigh on the market sentiment.
- 10-year US Treasury bond yield is losing more than 4%.
- US Dollar Index turns negative on the day below 98.20.
The USD/JPY pair came under renewed bearish pressure during the American trading hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven. As of writing, the pair was trading at 108.35, losing 0.43% on a daily basis.
Political headlines weigh on sentiment
US House of Representatives Speaker Nancy Pelosi claimed on Thursday President Donald Trump admitted to bribery after the Democratic-controlled House held its first public hearing in the impeachment inquiry.
"The bribe is to grant or withhold military assistance in return for a public statement of a fake investigation into the elections. That's bribery," Pelosi told reporters, per Reuters. "What the president has admitted to and says it's perfect, I say it's perfectly wrong. It's bribery."
This development triggered fresh risk-off flows and the 10-year US Treasury bond yield, which was last down around 4% on a daily basis, extended its slide while major equity indexes in the US continued to push lower.
Meanwhile, the US Dollar Index struggled to stay in the positive territory amid plummeting T-bond yields and caused the bearish pressure on the pair to remain intact. At the moment, the index is down 0.16% on the day at 98.16.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
