Risk-on Sentiment in Markets Drives USD/JPY Bullish - Forex News by FX Leaders

Risk-on Sentiment in Markets Drives USD/JPY Bullish

Posted Tuesday, August 20, 2019 by
Arslan Butt • 1 min read

Early on Tuesday, the US dollar is holding steady close to a three-week high as markets trade with a risk-on sentiment over expectations of central banks stepping in with stimulus measures to support global economies. The improvement in the market sentiment has also brought down safe haven currencies like the Japanese yen and the Swiss franc.

At the time of writing, USD/JPY is trading at around 106.55, after three consecutive days of the yen declining against the dollar. Markets are trading optimistically after US bond yields started climbing higher, erasing concerns of the US economy heading towards recession. There are also expectations that the Fed could announce stimulus measures at its upcoming Jackson Hole symposium to lend further support to the US economy.

The mood in global financial markets lifted further over reports of PBOC introducing reforms to help lower corporate borrowing costs, to drive up investment by companies. In addition, markets are expecting Germany to step in and buy new debt to keep its economy from plunging into recession.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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