- USD/JPY trades mildly higher supported by risk flows.
- US Dollar Index treads water close to 91.80.
- US main stock indexes look set to open sharply higher.
USD/JPY settled in positive territory on the first day of the week and moved mildly higher on Tuesday as JPY struggled to attract interest. The pair trades +0.12% on the day at 104.40.
US PMI data & Powell’s testimony in focus
Data from Japan revealed that the Unemployment Rate in October ticked up to 3.1% and the Jibun Bank Manufacturing PMI improved marginally to 49 ahead of forecasts of 48.3. The market shrugged of the reports.
Global equity indexes are advancing firmly on Tuesday, suggesting that risk sentiment is driving the financial markets. European stock indices are up 0.85% and 1.8%, whilst the S&P 500 Futures are almost 1% higher.
The US Dollar also had a hard time finding demand on Tuesday, keeping USD/JPY’s upside capped. The US Dollar Index, booked small gains on Monday and is currently -0.12% lower at 91.77.
Looking ahead, the IHS Markit’s and the ISM’s November Manufacturing PMI reports will attract attention., FOMC Chairman Jerome Powell will testify before the US Congress later.