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 shoots up
On Friday, the evergreen buck rallied versus its counterparts reacting to a rebound in American home sales, although profits were tamed by a steep soar in the Japanese yen as American government bond gains dived in the face of worries of the decelerating surge.
Estimating the greenback’s purchasing power against its primary rivals the USD index went up by about 0.17% being worth 96.15.
As follows from the National Association of Realtors report, existing home sales managed to ascend by 11.8% in February versus January’s 1.4% tumble to a seasonally updated annual rate of 5.51 million units. Market experts were expecting a 2.2% dive to 5.10 million houses.
In fact, the rebound in home sales was partly underpinned by the tumble in mortgage rates due to the Fed's everlasting pause on monetary policy tightening.
Following three-consecutive monthly tumbles, the given rebound in home sales definitely provides some relief on the outlook.
The weekly Freddie Mac poll on mortgage rates, uncovered on Thursday, revealed a 4.28% rate on a 30-year fixed-rate loan, in contrast with an outcome of 4.31% the previous week and also 4.94% in mid-November.
The evergreen buck’s march higher was tamed by a dive in American government bond gains because worries of economic deceleration escalated, propping up demand for the safe-haven Japanese yen.
The currency pair USD/JPY headed south by 0.83% concluding the trading session at 109.89.
Meanwhile, the UK pound limited its losses from yesterday versus the evergreen buck due to the fact that the European Union granted Great Britain a two-week extension.
The currency pair GBP/USD surged by about 0.66% coming up with $1.3194.
The currency pair EUR/USD dived by 0.78% being worth $1.1285.
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