- The USD / JPY fails to extend the latest rally.
- The US Fed chairman acknowledged economic pessimism, President Trump reiterated his favors for negative rates.
- Fear of trade wars, the wave of virus 2.0 also weighs on the commercial sentiment of the markets.
- Qualitative catalysts will be important to monitor management before the US session.
USD / JPY drop from 107.10 to 107.04 in the early morning Thursday in Asia. Despite this, the pair of yen remains clear of the low from yesterday, at 106.74, which in turn describes its lateral movement. While the risk aversion induced by trade / viruses should ideally weigh on the listing, the safe haven status of the US dollar seems to confuse traders.
The Trump-Powell fight continues…
While the Federal Reserve Chairman Jerome Powell Ruled Out Negative Rates at least now, despite his concern about the economic outlook, President Donald Trump recently expressed his disagreement with him.
In his latest comments, President Trump said he likes negative rates and reignites tensions between U.S. diplomats and monetary policy officials. The Fed The president said earlier: “Additional political measures may be necessary to avoid lasting damage to the economy.”
Trade / virus fears keep risk aversion on the table …
In addition to the US-China fighting over the Phase One deal and the virus epidemic, US President Trump’s order to rethink the administration’s previous decision to diversify stocks in China has sparked new tension between world powers. In addition, a bill is on the table of the United States Senate which could give President Trump the power to sanction China if it steps back by providing information on how the coronavirus (COVID-19) has spread out. of its borders.
Elsewhere, China also disagrees with Australia after the Aussie The PM has called for an inquiry into the role of the dragon nation in a virus epidemic.
In describing the sentiment of risk, Wall Street kept red on Wednesday while yields on US Treasuries continued to decline.
Traders can now keep their eyes on trade / virus updates for a new boost amid a lack of Japan / US data events in Asia. However, the American weekly Jobless Claims, expected at 2500K against 3169K, could entertain the market in the latter part of the day.
A sustained trade below an EMA level at 50 days of 107.70 gradually leads to the quotation towards the monthly low close to 106.00. However, the 10-day EMA, around 107.00, offers immediate support to the pair.