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Maintaining the trend of dollar weakness amidst adjustments
Dollar/Yen hovers around 149 in London's forex overview.
“Maintaining the trajectory of dollar weakness amidst adjustments, the Dollar/Yen pair remains at approximately 149 in the London forex overview”
In the London market, the enduring trend of dollar weakness persists despite intermittent adjustments. The Dollar/Yen pair, influenced by risk-off sentiments in the Tokyo market due to concerns related to China, experienced a decline to around 148.78 in the early London session. Subsequently, it rebounded to the 149.30 range as the downward trend in U.S. bond yields temporarily paused. However, lacking robust support, it softened once again towards the 149 yen level. European and U.S. stock futures continue to dwell in negative territory, with NY crude oil futures dropping from around $77 to $74 during London hours, maintaining a cautiously risk-averse environment. The U.S. 10-year bond yield briefly rose to around 4.51% in the early Tokyo session but has since been on a declining trend, currently hovering around 4.46%. Euro/Dollar extended its gains from the mid-1.09 range to around 1.0959, while Pound/Dollar was bought from the mid-1.26 range to approximately 1.2627. The market during this period demonstrates nervous trading, with Euro/Yen in the mid-163 range and Pound/Yen around 188, both exhibiting fluctuations. Under the pressure of Dollar/Yen’s downward momentum, rebounds in both pairs are short-lived.
The Dollar/Yen pair is currently trading around 149. In the early Asian session, it reached a high near 149.67 but faced selling pressure afterward. In the early London session, it updated the day’s low around 148.78. Despite a rebound to around 149.30, the pair once again breached the 149 yen level. The U.S. 10-year bond yield, currently in the mid-4.46% range, is exerting downward pressure on the Dollar/Yen exchange rate.
Euro/Dollar is trading in the mid-1.09 range. After reaching a low of around 1.0927 in the early Tokyo session, it gained traction, reaching a high near 1.0959 in the early London session. Despite fluctuations, it is currently consolidating around 1.0950. Euro/Yen reached a high near 163.72 in the early Tokyo session, then dipped to around 162.94 in the Tokyo afternoon. It rebounded to around 163.50 in the early London session but is currently hovering around 163.10. Trading against the Pound shows mixed activity. According to the latest Ifo Institute business climate survey in Germany, the export expectations index for November rose to -3.8 from October’s -6.3, marking a two-month consecutive improvement. It stands at the highest level in the past six months. However, variations in strength and weakness are observed across sectors, indicating lingering fragility.
Pound/Dollar is trading in the mid-1.26 range. After reaching a low around 1.2591 in the early Tokyo session, it was predominantly bought, reaching a high near 1.2627 in the early London session. In the current market, trading is volatile around the mid-1.26 range, maintaining higher levels since the Tokyo market. Pound/Yen reached a high near 188.53 in the early Tokyo session, then dropped to around 187.60 in the Tokyo afternoon. Subsequently, it rebounded to around 188.20 during the London hours. Euro/Pound is experiencing a nervous back-and-forth in the range between 0.8870 and 0.8880. BoE Governor Bailey, while noting that it’s premature to discuss rate cuts, hinted at the challenges of bringing inflation down to 2%. The CBI’s retail-related indicators improved, but the sector remains in negative territory.
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