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Weak Risk Pushes USD/JPY, USD/CHF Higher

Buyers are in charge in USD/CHF

Today Treasury yields are rising, up around 6 basis points to 4.142% for the 10-year notes, bolstering the USD for most of the day, however, the gains have been slow. USD/JPY has moved significantly, up 0.9% to 149.46 for the day. This surge reflects the general strength of the dollar but most of the gains have come from the JPY side, as the Bank of Japan repeated again this morning that they are not thinking about tightening the policy.

Cable slipped around 0.5% lower to 1.2570, but has made a reversal in the last hour or so, gaining more than 30 pips and climbing above 1.26 again. EUR/USD lost 40 pips falling to 1.0740, but has also siked 20 pips higher lately. Although there’s resistance waiting above, with the 100 moving average at 1.0785 on the daily chart, which will likely stop the climb, so that’s where we are looking to go short on this pair.

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Commodity dollars are also under pressure, with NZD/USD unable to hold gains above 0.61 and has declined 50 pips lower to 0.6070s. The Aussie is down 0.6% to 0.6480, probably due to slow stock markets. The S&P 500 index is down 0.3% so far, while the USD is strengthening versus major currencies, propelled by higher Treasury rates.

A rise in yields is the most notable event ahead of US trade, after similar price behavior seen yesterday, however, yesterday the USD was sliding lower, while today USD buyers are in charge as it is making decent gains against most currencies. Later, there will be an auction of 30-year notes, which may help to enhance yields. This auction takes place amid a turbulent week for the market. Investors will closely examine the auction results to assess market sentiment and potential yield moves. Overall, the market is still sensitive to fluctuations in yield levels, and events like auctions can impact investor sentiment and trading activity.

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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