USD/JPY struggles to gain traction despite broad USD strength, trades near 109.30
- US economy expanded by 2.1% in third quarter as expected.
- The 10-year US Treasury bond yield erases small portion of early gains.
- US Dollar Index rises to fresh 10-day highs above 97.50.
The USD/JPY pair struggles to break out of its tight trading range despite the relatively strong market reaction to the US Bureau of Economic Analysis' (BEA) final estimate of the third-quarter Gross Domestic Product (GDP) data. As of writing, the pair was trading at 109.32, losing 0.05% on a daily basis.
USD/JPY ignores US data
The US economy grew by 2.1% on a yearly basis in Q3. Although this reading matched the market expectation and the previous estimate, the US Dollar Index rose to a fresh 10-day high of 97.61 with the knee-jerk reaction. As of writing, the index was up 0.15% on the day at 97.55.
On the other hand, the 10-year US Treasury bond yield eased from its session tops to help the JPY stay resilient against the greenback.
Later in the session, the BEA will release the annual core Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred gauge of inflation, for November. Additionally, investors will be paying close attention to Wall Street's performance in the second half of the day.
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.
