- USD/JPY drops almost two hundred pips on Thursday.
- US S&P Global PMI falls to monthly lows
- US yields collapse as recession fears increase.
The pair then rebounded modestly, and it is hovering around 134.60/70, down more than 200 pips from Wednesday’s multi-year high. Below 134.40, the next support is seen at 133.80.
Yen gains as growth outlook worsen
Earlier on Thursday, Eurozone PMIs came in below expectations and triggered a rally in European bonds and helped the yen. More recently, the US S&P Global PMI also showed a significant decline in activity. Both the manufacturing and service numbers fell to the lowest level in months at 52.4 (consensus: 56) and 51.6 (53.5), respectively. Despite the worrying data, Wall Street is rising, with the Nasdaq up 1.25% and the S&P 500 climbs 0.63%.
The report added to concerns about the economy and weighed on monetary policy expectations. The US 10-year yield fell to 3.00%, the lowest in two weeks; just on Friday, it was trading near 3.50%, while the 30-year fell to 3.15%.
The US lost momentum across the board after the report. The DXY erased daily gains and pulled back to 104.20/30. The dollar’s losses against the yen are offset by a slide of EUR/USD as German bonds have the best day in years.
Fed Chair Powell is testifying again at Congress. Regarding concerns about the economic outlook, he mentioned is possible to have a strong labor market while curbing inflation. Fed’s Bowman said another 75 bps rate hike will be appropriate in July.
|Today last price||134.69|
|Today Daily Change||-1.59|
|Today Daily Change %||-1.17|
|Today daily open||136.28|
|Previous Daily High||136.72|
|Previous Daily Low||135.68|
|Previous Weekly High||135.6|
|Previous Weekly Low||131.5|
|Previous Monthly High||131.35|
|Previous Monthly Low||126.36|
|Daily Fibonacci 38.2%||136.08|
|Daily Fibonacci 61.8%||136.32|
|Daily Pivot Point S1||135.74|
|Daily Pivot Point S2||135.19|
|Daily Pivot Point S3||134.7|
|Daily Pivot Point R1||136.77|
|Daily Pivot Point R2||137.26|
|Daily Pivot Point R3||137.81|
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