Annuncio pubblicitario
Italia markets close in 8 minutes
  • FTSE MIB

    34.754,01
    -5,68 (-0,02%)
     
  • Dow Jones

    39.778,16
    +18,08 (+0,05%)
     
  • Nasdaq

    16.379,04
    -20,48 (-0,12%)
     
  • Nikkei 225

    40.168,07
    -594,66 (-1,46%)
     
  • Petrolio

    82,56
    +1,21 (+1,49%)
     
  • Bitcoin EUR

    65.521,58
    +1.699,79 (+2,66%)
     
  • CMC Crypto 200

    885,54
    0,00 (0,00%)
     
  • Oro

    2.234,80
    +22,10 (+1,00%)
     
  • EUR/USD

    1,0801
    -0,0028 (-0,26%)
     
  • S&P 500

    5.250,71
    +2,22 (+0,04%)
     
  • HANG SENG

    16.541,42
    +148,58 (+0,91%)
     
  • Euro Stoxx 50

    5.086,80
    +5,06 (+0,10%)
     
  • EUR/GBP

    0,8546
    -0,0021 (-0,24%)
     
  • EUR/CHF

    0,9728
    -0,0057 (-0,58%)
     
  • EUR/CAD

    1,4622
    -0,0065 (-0,44%)
     

Dollar/Yen Lower Amid Global Stock Market Weakness

The Dollar/Yen is under pressure early Wednesday as investors moved money into the safe-haven Japanese Yen amid a global equity market sell-off. Traders are shrugging off the surge in U.S. Treasury yields that tends to drive up demand for the U.S. Dollar.

At 05:21 GMT, the USD/JPY is trading 114.304, down 0.282 or -0.25%. On Wednesday, the Invesco CurrencyShares Japanese Yen Trust ETF (FXY) settled at $81.88, down $0.27 or -0.32%.

Tuesday Recap

The USD/JPY rose to a one-week high on Tuesday following a jump in benchmark U.S. Treasury yields. The Japanese Yen steadied after initially sliding as the Bank of Japan said it would stick to its ultra-loose monetary policy.

ANNUNCIO PUBBLICITARIO

The U.S. Federal Reserve meets next week and likely will signal that it will raise rates in March for the first time since the start of the coronavirus pandemic. The Fed funds have priced in four rate hikes in 2022.

As investors prepared for the possibility of the Fed being more hawkish than expected, Treasury yields jumped, with two-year yields – which track short-term rate expectations – crossing 1% for the first time since February 2020. The U.S. 10-year yield hit a two-year peak close to 1.890% overnight.

Safe-Haven Buying Boosts Demand for Yen Early Wednesday

Asia-Pacific markets fell on Wednesday following an overnight sell-off on Wall Street. The move may have spooked investors enough to seek protection in the Japanese Yen. This type of price action could pressure U.S. Treasury yields if investors decide to buy government bonds for protection.

The Nikkei 225 in Japan dropped 2.22%, while the Topix was lower by 2.33%. South Korean shares also tumbled:  the KOSPI gave up earlier gains and fell 0.65% and the KOSDAQ was down 0.83%.

Hong Kong’s Hang Seng Index traded near flat while the tech-focused Hang Seng Tech Index fell 0.14%.

Chinese mainland shares struggled for gains:  The Shenzhen component was down 1.6% while the Shanghai Composite fell 0.29%.

In Australia, the ASX 200 dropped 0.9% as most sectors traded lower. The heavily weighted financials subindex declined 1.37% as the country’s major bank names sold off.

In the U.S. on Tuesday, the Dow Jones Industrial Average lost more than 540 points after Goldman Sachs shares sold off as the investment bank missed analysts’ expectations for earnings. The S&P 500 as well as the NASDAQ Composite, which comprises technology stocks sensitive to interest rates, also declined sharply.

Daily Forecast

At 13:30 GMT, the U.S. will release reports on Building Permits and Housing Starts. These reports are important because they are the first to come out after the Fed informed the world of its aggressive hawkish intentions to raise interest rates.

Traders will be keeping an eye on U.S. Treasury yields and the stock market.

The USD/JPY could bounce back if the stock market stabilizes, but if equities continue to plummet then we could see more movement into the safe-haven Japanese Yen on Wednesday.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: