- The USD / JPY consolidates bearish movements in Asia.
- The NY bulls were on the starting blocks of Wall Stree but couldn’t hold on and the yen caught an offer.
The USD / JPY is trading on Wednesday between a range of 108.50 and 108.87 in Asia, which is being consolidated and stable over the session. While the positive mood of yesterday’s risk has spread to Europe, optimistic about the slowdown in the rate of new cases of COVID-19, the American markets could not hold out. Despite this, the US Secretary of Housing said that there were encouraging signs that the cases of COVID-19 in the United States could stabilize sooner than expected, American stocks rushed into a red sea towards the end of the day.
The bulls were out in the starting blocks on Wall Street and comments from the New York noon session, Governor Andrew Cuomo, who said daily hospitalizations were reaching a plateau in the state, increased appetite for the risk. However, the markets fell and investors quickly cashed in. As a result, after a day of gains, the Dow Jones finished down 0.1%, or 26 points. At its highest point, the index had increased by 937 points. The S&P 500 closed down 0.2% and the Nasdaq Composite finished down 0.3%:
In other news, British Prime Minister Boris Johnson is said to be in good spirits and in stable condition in intensive care. In addition, Japanese Prime Minister Abe has declared a state of emergency in Tokyo and six other provinces and plans to combat the economic fallout from COVID-19 with a huge fiscal stimulus package. “The package, worth 16.5 billion yen, is equivalent to 20% of GDP.
Meanwhile, European leaders are meeting to discuss a political toolbox that can represent up to 540 billion euros (3.8% of GDP). However, it will be difficult to obtain a broad agreement between European leaders on the debt pooling plan. In the United States, Treasury Secretary Steven Mnuchin is seeking an additional $ 250 billion for small business loans, “said analysts at ANZ Bank.
Eyes on the Fed minutes
As for yields on 2-year US Treasuries, they initially went from 0.26% to 0.30% but then returned to 0.26%, with 10-year yields rising from 0.72% to 0, 78%, then at 0.71%, the American stocks having given up their initial gains. This brings us to the FOMC meeting minutes, which relate to the unplanned meeting of March 15. These are now due and the markets will turn to them for “details on the thinking process to move the meeting 3 days to a Sunday and reduce the funds rate by 100 basis points,” analysts at Westpac said. .
USD / JPY levels