How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Greenback fluctuates near a seven-week peak
On Tuesday, the evergreen buck kept close to the maximum of seven weeks against the basket of other key currencies amid rising revenues of American Treasury bonds.
The US dollar index, which gauges the purchasing power of the American currency against the trade-weighted basket of six leading currencies, accounted for 90.70 having jumped to 90.84 at night, which is the highest value since March 1.
On Monday, the revenue of US ten-year government bonds managed to hit 2.998% after the outlook for inflation was added to the forecasts about accelerating of the rate of the Fed's interest rate increase.
The revenue of US ten-year bonds headed south a bit and was at the 2.960% position.
The dollar's exchange rate managed to peak for ten weeks against the Japanese yen. The currency pair USD/JPY tacked on by 0.15% coming up with 108.87 having soared by 0.83% on Monday.
Demand for Japan’s currency normally ascends in times of political or economic instability. With the increased confidence of investors, the rate of the Japanese currency is declining, which happened in the last trading session against the backdrop of receding geopolitical risks and tensions in international trade.
The common currency traded close to a minimum for seven weeks versus the evergreen buck. The currency pair USD/JPY traded at 1.2204, staying above the minimum of 1.2185 hit during the night trading.
The British pound headed south to a minimum for a month against the evergreen buck. The currency pair GBP/USD hit 1.3932 due to doubts that the Bank of England will lift the interest rate next month.
The previous week, the pound's rate rallied to a maximum from the moment of voting on Brexit in June 2016.
Another factor for the depreciation of the UK currency was the return of uncertainty about the outcomes of the Brexit negotiations before the report on the surge of the British economy for the first quarter to be uncovered this week.
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