- 10-year US Treasury bond yield erases nearly 3% on Friday.
- Wall Street's main indexes suffer losses following positive start.
- US Dollar Index climbs to fresh multi-week highs after PMI data.
The USD/JPY pair reversed its direction during the American trading hours as the risk-off atmosphere allowed the JPY to find demand as a safe-haven. As of writing, the pair was trading at 109.27, erasing 0.2% on a daily basis. For the week, the pair is losing around 80 pips.
JPY capitalizes on risk aversion
Although it looked like worries over the coronavirus becoming a worldwide epidemic were easing with the World Health Organisation announcing that it had not yet become a global health emergency, reports of confirmed cases in the United States seems to be forcing investors to stay away from risk assets ahead of the weekend.
The Centers for Disease Control (CDC) on Friday confirmed that out of 63 patients under investigation from 22 states, to date; 2 have tested positive for coronavirus.
Reflecting the dismal market mood, the 10-year US Treasury bond yield is down 2.95% on the day while Wall Street's main indexes, which opened the day in the positive territory, are down between 0.6% and 0.9%.
On the other hand, the greenback gathered strength after the data published by the IHS Markit showed that the economic activity in the private sector continued to expand at a robust pace in January in the US with the Composite PMI rising to 53.1 from 52.7. The US Dollar Index advanced to its highest level since early December at 97.95 to help the pair keep its losses limited. At the moment, the index is up 0.22% on the day at 97.90.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0650 after PMI-inspired rebound
EUR/USD loses traction and retreats to the 1.0650 area after rising toward 1.0700 with the immediate reaction to the upbeat PMI reports from the Eurozone and Germany. The cautious market stance helps the USD hold its ground ahead of US PMI data.
GBP/USD fluctuates near 1.2350 after UK PMIs
GBP/USD clings to small daily gains near 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling stay resilient against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.