USDJPY continues lower today, printing eight-session lows below 109.20 in early New York session trades and falling under Friday’s post-jobs report low of 109.37. The pairing had topped at 109.62 during the Asian session which is the key 61.8 Fib level of the April decline from 110.94 to 107.46.
The Dollar overall remains heavy, despite the small uptick in Treasury yields, relative to Friday’s lows, though with Fed taper talk largely off the table for now, the USD is likely to continue to suffer, with rates likely to remain under recent highs. This said, Covid restrictions in Japan continue, which will ultimately further hurt its fragile economic recovery, and could, at the margins at least, weigh on the JPY. Conversely, EURUSD is trading back to day highs at 1.2175 and Cable is back to 1.4180 from the European session low at 1.1410.
US stock markets have opened the new week in a relatively subdued mood, the USA500 closed on Friday at 4,229 and has added just 1 point in early trades, the USA30 rotates around 34,800 and the USA100 at 13,750, shrugging off the G7 finance ministers’ proposals for a minimum 15% corporation tax that would potentially impact the major technology companies more than most.
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Head Market Analyst
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