USD/JPY meets two-year high above 112.00 amid higher UST-bond yields
- USD/JPY rides on the previous week’s optimism on Monday.
- US Treasury yields settle above 1.61% for the first time since June.
- US Dollar Index stalls near 94.11 with 0.11% losses.
USD/JPY begins the new trading week on a higher note following Friday’s splendid move. The pair rose nearly 70-pips on Friday and breached the 112.00 mark for the first time since April 2019. At the time of writing, USD/JPY is trading at 112.23, above 0.01% for the day.
The US benchmark 10-year Treasury yields trade at 1.61% with 0.42% gains as Fed’ expected to remain immune from the disappointing Nonfarm payroll data (NFP). The average job growth rate anchors the not so impressive readings otherwise. The US economy added 194K jobs in September, much below the market forecast of 500K. The Unemployment data fell 4.8%, and average hourly earnings edged up.
The US Dollar Index (DXY), which tracks the performance of the greenback against six major currencies, trades near 94.11 with 0.11% despite the optimism surrounding the US debt ceiling. US Treasury Secretary Janet Yellen shows her confidence that Congress would raise the federal debt ceiling after the temporary reprieve runs out on December 3. In the latest development, as per Reuters China offered the idea of cancellation of tariffs and sanctions over the weekend virtual talks between US Trade Representative Katherine Tai and China’s Vice Premier Liu He. This, in turn, weighs slightly negative on the greenback.
As for now, in the wake of the partial US holiday on Columbus Day, the dynamics around the US dollar continues to influence the pair’s performance in the near future.
USD/JPY additional levels