Forex Marketz Daily Forex News – Fully Markets Update
The Japanese yen made gains this morning against the U.S. dollar. This comes despite risk aversion in the financial markets. Global equities continue to retreat as traders are worried about a slowdown in global economic growth sparking safe haven flows.
The benchmark USD/JPY Forex market was lower during the morning Asian trade hours as the yen added 0.4 percent. This market was last trading at 112.74 yen. This market did give back some gains seen overnight.
Looking at the benchmark EUR/USD Forex market, this morning, the euro was trading fairly flat at $1.1347. Overnight, the euro fell from a weekly high of $1.1419. This level was set on Tuesday.
The AUD/USD Forex market was down over a half a percent. The Australian dollar was down 0.52 percent to trade at $0.7230.
The Australian currency was weaker as it shed, at one point, almost one percent the previous day. This came after particularly soft local gross domestic product data (GDP).
Dollar Dips against the Yen as Traders Respond to the Treasury Yield Curve
So far this week the spread between the two and five year Treasury yields have inverted. The two year yield and the ten year yield is now at its flattest in over a decade. This comes after long-term rates have fallen.
Technically speaking, a flatter curve is an indicator of a slowing economy. Lower longer- dated yields usually say that traders see economic weakness ahead.
The benchmark ten year Treasury fell to a three month low, on Tuesday, at 2.885 percent. The yield was last at 2.9046 percent.
