Asian stocks skidded on Friday as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough. Energy markets were not spared the volatility either, with oil prices surging more than 5% overnight to their highest in over a year, after OPEC and its allies agreed to keep production unchanged into April as demand recovery from the coronavirus pandemic was still fragile. U.S. stocks had dropped sharply on Thursday after Federal Reserve Chair Jerome Powell disappointed some investors by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates.
A busy day ahead on the economic calendar puts the EUR, the Loonie, and the U.S Dollar in focus. Early in the day, China Premier Li Keqiang’s speech will draw interest…
The US dollar has rallied rather significantly on Thursday to break through the ¥107 level again, in what is becoming a bit of a parabolic move.
The British pound has rallied towards the ¥150 level, an area that had previously been a massive barrier.
As a result to the week’s start for USD/CAD, AUD/USD and EUR/USD to trade at crucial high /low inflection points, EUR/USD rose 120 pips , AUD/USD 133, and both GBP/USD and USD/CAD traded 145 pips. Change of tend remains on hold for now.
The direction of the USD/JPY on Thursday will be determined by trader reaction to the major 50% level at 107.154.
The US dollar rallied again against yen to reach towards the ¥107 level. At this point, the market has stalled a bit, and perhaps we are overbought.
The British pound has rallied significantly on Wednesday to reach towards the ¥150 level again, but that is an area that will continue to be very resistive.
It’s a busy day ahead on the economic calendar. Economic data from the U.S will draw plenty of interest, with service sector PMIs from the Eurozone also in focus.
The US dollar has rallied significantly on Tuesday to reach towards the ¥107 level. At this point, it is obvious that we are trying to change the overall trend.
The British pound initially pulled back during the trading session on Tuesday only to find sellers exhausted.
It’s a relatively busy day on the economic calendar, with the EUR and Loonie in focus. First up, however, is the RBA monetary policy decision later this morning.