USD/JPY Feels The Pressure
The US Dollar continues steadily on its upward trend and marks a 5-year high against the Japanese currency. The greenback traded above 118 with the Yen. It normally would be typical for the Yen to strengthen during a risk-off sentiment, but the skyrocketing oil and raw material prices are not helping it due to higher import costs. Moreover, the USD/JPY is also affected by the expected Fed rate increase while the Bank of Japan maintains a calmer stance. Indeed, treasury yields continued to rise to reach a 3-year high close to 2.14%.
Meanwhile, on the commodities front, gold took a dip and traded below $1,930 today, showing a deep downward shift from last week’s peak at $2,070. Crude oil also dipped slightly, trading below $100, in contrast to its $130 price at the beginning of the month.
On the stock market, the S&P 500 and the Nasdaq closed the day on a low while the Dow Jones finished the session flat.
Asian Markets Overview
China emerged stronger than expected on the year-to-date industrial production with a 7.5% increase instead of the predicted mere 4%. However, China is going through a renewed Covid-19 outbreak with many provinces going into full lockdown, including its main tech hub Shenzhen.
As a result, Hong Kong and China stocks fared a little on the downside along with Australia’s ASX 200 following the dip in commodities. And both the New Zealand Dollar and Australian Dollar had poor performances today. In contrast, Japan’s Nikkei 225 made small gains supported by the weaker Yen.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
Subscribe to our newsletter to receive our weekly updates + more straight to your inbox!