Japanese Yen Leaps as US Dollar Sinks Post Powell. Is the Peak in Place for USD/JPY?

Japanese Yen, USD/JPY, US Dollar, Fed, Powell, Crude Oil, Gold - Talking Points

REGISTER HERE:

https://one.exness-track.com/boarding/sign-up/a/ie7p0z8iuz

 

 

 

 

The Japanese Yen is the best-performing currency through the Asian session today as the fallout from Federal Reserve Chair Jerome Powell’s commentary reverberates through markets.

 

He signalled that the Fed is likely to decelerate the size of their hikes, but not the scope. The market interpreted the remarks as a dovish tilt, with equity indices soaring higher, Treasury yields tumbling lower, and the US Dollar pummelled.

 

The Dow Jones gained 2.18%, the SP added 3.09% and the Nasdaq rallied an astonishing 4.41%. The SP 500 closed above the 200-day simple moving average (SMA) for the first time since April.

 

Treasury yields in the 2- to 10-year part of the curve dropped around 15 basis points. The 1-year note is unchanged.

 

For USD/JPY, the collapse in US yields appears to be a driving force undermining the currency pair.

 

 

image1.png

 

REGISTER HERE;

https://one.exness-track.com/boarding/sign-up/a/ie7p0z8iuz


Juma Mshihiri

42 Blog posts

Comments