• USD/JPY crawled higher on Thursday, lacking any follow through buying.
  • The risk-off market mood undermined the safe-haven JPY capping early gains.
  • A  pickup in USD demand was supportive, limiting downside.

The USD/JPY hit the daily low in early trade in the  European session. However, the move lacked strong follow-through. USD/JPY trades mildly higher around104.50

USD/JPY failed to capitalize on early gains with sellers coming in around 25-30 pips from the intraday high of 104.75. Risk aversion took over amid fading hopes about a pre-election US fiscal stimulus package underpinning the safe-haven Japanese yen and limiting meaningful upside for  USD/JPY.

House Speaker Nancy Pelosi will continue discussions with the US Treasury Secretary Steven Mnuchin. She remains optimistic about reaching a deal. However, she also acknowledged that the November 3rd deadline could be too tight. Concerns also rose over Congress’ ability to overcome strong opposition from Senate Republicans over such a large stimulus bill.

Furthermore, US President Trump accused Democrats of being unwilling to compromise on stimulus. All of this is playing out amid US political uncertainty, which is keeping the bulls from placing aggressive bets on USD/JPY. An increase in demand for the US dollar offered support and helped cap deeper losses.

Nevertheless, the USD/JPY trades close to its one-month lows, around 104.35 hit on Wednesday. The final presidential debate between President Trump and Democratic candidate Joe Biden is now in focus in addition to US Initial Weekly Jobless Claims.

 

Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
Disclaimer: Currencylive.com is a news site only and not a currency trading platform. Read more...
Show less

RELATED ARTICLESMORE FROM AUTHOR