Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar rose against the yen during Asian trade hours, this morning. This comes after U.S. Treasury Secretary Steven Mnuchin said the trade war between the two largest economic superpowers is “on hold.” This news was a boost for risk sentiment as easing trade tensions between China and the United States abated.
Looking at the benchmark USD/JPY Forex market, the dollar rose by 0.2 percent this morning. The USD was trading at 110.99 yen in early Asian trade. This is near a four month high of 111.085 yen. That was set last Friday.
The U.S. dollar index, which gauges the USD against six Forex partners, was at a five month high this morning at 93.860.
The EUR/USD Forex market lost ground this morning. It was at $1.1744. This is its lowest price level in five months. At last glance, the EUR/USD had fallen 0.2 percent to trade at $1.1747.
So far, this month, the euro has shed seven cents as the USD has rallied sharply.
Dollar Traders watch Treasuries and Trade Headlines
There seems to be lessening tensions, regarding a trade war, between the U.S. and China. This will support risk assets and hurt safe haven assets like the yen.
On Friday, the yield on the benchmark 10 year Treasury note climbed to a seven year high at 3.128 percent. This supported the U.S. currency against the yen to rise above 111 yen, thus gaining a strong foothold over this key level. The USD/JPY Forex market could now challenge 112 yen and higher.
As mentioned above, the euro currency has lost almost seven cents this month as the U.S. currency has rallied.
In political headlines, out of Europe, an agreement between Italy’s far right League and the 5 Star Movement on a unity deal would see taxes cut and an increase in welfare spending. That is hurting the euro currency.
