Yen backs off five-month high as Japanese treasury yields stall
The Japanese yen fell in Asian trade on Wednesday against major rivals, extending losses for the second session against the dollar away from five-month highs on profit-taking, while Japanese treasury yields stalled.
It comes after data showed Japan’s producer prices slowed down, bolstering the case for the BOJ to maintain interest rates unchanged this month.
The Price
The USD/JPY pair fell 0.35% today to 148.29 yen per dollar, with a session-low at 147.65.
The yen lost 0.35% against the dollar on Tuesday on profit-taking away a five-month high at 146.54.
Japanese Yields
Japan’s 10-year government bond yields fell 0.5% today away from a 16-year peak at 1.585%, pressuring the yen.
It comes after the release of data that showed Japanese producer prices slowed down in February, a hint to what consumer prices could be in March.
However, Reuters reports that the BOJ might consider another rate hike in May due to expected growth in wages and extended rises in food prices.
US Yields
US 10-year treasury yields rose 0.2% today on track for the second straight profit, underpinning the dollar.
The odds of a Fed 0.25% interest rate cut in March stood at just 3%, with investors now waiting for important US inflation data today to gather more clues.
Ripple rallies over 6% but risk appetite continues to waver
Ripple rose on Tuesday as some cryptocurrencies perform well despite a weak risk appetite and mounting trade tensions.
President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.
In yet another escalation, US President Trump raised tariffs on Canadian steel and aluminum imports by an additional 25% to a total of 50%.
Trump said the decision comes in response to Ontario’s decision to impose 25% taxes on electricity exports to the US.
Trump criticized Canada sharply for its anti-American tariffs scheme as he described it, asserting that the new tariffs on steel and aluminum will be enforced tomorrow.
He especially criticized Canada’s farm tariffs at “250% to 390%” on American dairy products.
US two-year treasury yields rose 1.6 basis points to 3.912%, while US 10-year treasury yields rose by 3.1 basis points to 4.244%, as 30-year yields rose by 2.6 basis points to 4.564%.
Earlier US data showed the JOLTS job openings up by 232 thousand to 7.74 million in January.
Ripple
Ripple surged 6.1% as of 20:31 GMT on Coinmarketcap to $2.19.
Gold climbs after two sessions of losses
Gold prices rose on Tuesday after two sessions of losses with demand climbing on the precious metal as the dollar fell against most major rivals.
President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.
In yet another escalation, US President Trump raised tariffs on Canadian steel and aluminum imports by an additional 25% to a total of 50%.
Trump said the decision comes in response to Ontario’s decision to impose 25% taxes on electricity exports to the US.
Trump criticized Canada sharply for its anti-American tariffs scheme as he described it, asserting that the new tariffs on steel and aluminum will be enforced tomorrow.
He especially criticized Canada’s farm tariffs at “250% to 390%” on American dairy products.
US two-year treasury yields rose 1.6 basis points to 3.912%, while US 10-year treasury yields rose by 3.1 basis points to 4.244%, as 30-year yields rose by 2.6 basis points to 4.564%.
Otherwise, the dollar index fell 0.4% as of 20:05 GMT to 103.3, with a session-high at 103.9, and a low at 103..2.
On trading, gold spot prices rose 0.9% as of 20:06 GMT to $2924.5 an ounce.
Wall Street extends losses, Dow Jones tumbles over 500 points
US stock indices fell on Tuesday and expanded the losses amid new escalation in the trade war, which threatens a potential recession in the US.
President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.
In yet another escalation, US President Trump raised tariffs on Canadian steel and aluminum imports by an additional 25% to a total of 50%.
Trump said the decision comes in response to Ontario’s decision to impose 25% taxes on electricity exports to the US.
Trump criticized Canada sharply for its anti-American tariffs scheme as he described it, asserting that the new tariffs on steel and aluminum will be enforced tomorrow.
He especially criticized Canada’s farm tariffs at “250% to 390%” on American dairy products.
US two-year treasury yields rose 1.6 basis points to 3.912%, while US 10-year treasury yields rose by 3.1 basis points to 4.244%, as 30-year yields rose by 2.6 basis points to 4.564%.
On trading, Dow Jones tumbled 1.2%, or 519 points as of 14:56 GMT to 41,392 points, while S&P 500 slid 0.8%, or 45 points to 5568 points, as NASDAQ gave up 0.4%, or 75 points to 17,393 points.