1 min to read
There was a slight dominance of yen selling in the afternoon session
leading to the USD/JPY pair reaching a new high for the day.
“During the afternoon session, we observed a slight dominance of yen selling, resulting in the USD/JPY pair reaching a new high for the day”
Specifically, in the Tokyo market, the USD/JPY pair climbed to approximately 138.83, surpassing the earlier high recorded. However, it’s worth noting that the pair initially experienced a significant drop to around 138.16, triggered by lower-than-expected market forecasts for the US Consumer Price Index (CPI) in June, which were revealed in the previous day’s overseas market. Nevertheless, as the Tokyo market unfolded, we witnessed an increase in selling pressure on the dollar due to the decline in US 10-year bond yields, causing the pair to further decline to approximately 138.08, below the previous day’s low. However, with the Nikkei Average on the rise and the decline in US 10-year bond yields stabilizing, buying pressure emerged, leading to a reversal in the afternoon and pushing the pair up to approximately 138.83.
In the morning session, the eurodollar pair experienced a climb to around 1.1149, marking its highest level in approximately 1 year and 4 months, amidst a phase of dollar selling. However, the pair struggled to maintain its upward momentum as the session progressed. Conversely, the euroyen pair reached its daily high by rising to approximately 154.62 in the afternoon.
The resilient performance of Asian stocks has generated a prevailing demand for risk-sensitive Oceanic currencies. As a result, we witnessed a temporary rise in the AUD/USD pair to around 0.6820, which represents its highest level in approximately 3 weeks since June 20. Similarly, the NZD/USD pair reached approximately 0.6339, its highest level in approximately 2 months since May 11.
Visit XM Official Website.
