US Dollar Holds Ground Against JPY and CHN While Wall Street Rises

The global market changes have put the greenback on the right track in the forex market. The USD has outrun several currencies from the Asia-Pacific in the last 24 hours alone. Specifically, the currency’s run against the JPY has been so phenomenal that it is expected to reach the 2002 peak comfortably. On the other hand, USD/CHN recovered from the long-lasting downside just as the People’s Bank of China changed the rates for April.

The positive impacts on Wall Street and Treasury Yields in the global market are the primary force behind the USD’s recent success. As the global market turned out positive, the Nasdaq 100, S&P 500, and Dow Jones from Wall Street gained 2.23%, 1.65%, and 1.54%, respectively. Traders should research and review the best forex trading platforms before considering investing in a currency pair.

The feds are currently dealing with the highest inflation in 40 years. The current developments have proven that the currency can withstand the pressures of inflation, in the opinion of Raphel Bostic, the President of the Bank of Atlanta. This view is further substantiated by the rising rates of the 2-year and 10-year US Treasury yield bonds. The yield rates of these two bonds reportedly increased by 5.87% and 2.91%, respectively. The assets flew further away from the inversion point and closer to the maturity spectrum.

On the other hand, the dovish policies of the Bank of Japan do not seem to help it in the global economy. The ever-so-widening yield differences joined with the policies to further hold back the JPY in the market. Currently, the officials are hoping to monitor and stabilize the trajectory of the Japanese Yen and avoid any hasty decisions that would further bring the value down. The USD/JPY trendline has risen since last March, and the pair has already broken above the 61.8% Fibonacci extension. From its current position at 128.468, the pair is rallying to the 78.6 extensions at 130.421. This current trajectory can potentially bring the currency to the 2002 peak at 135.16 at this rate.

The annual income reports of fell short of expectations and lost around 20% in the stock market in 24 hours. On Wednesday, the reports resulted in bearish sentiment for stocks in the Asia-Pacific session. Many in the market are looking at the People’s Bank of China as it reported to set the prime loan rates for 1-year and 5-year loans for April. Moreover, the covid-policy has impacted the county’s manufacturing process heavily. The policy could open ways for the USD to gain ground against CNH. The USD has already broken the downtrend against the Chinese Yuan, which has continued for over a year. The price has passed through the resistance at 6.4107 and is exposed to the September high of 6.4880.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button