The US dollar rebounded modestly against the Japanese Yen this morning as Treasury yields pulled back from 15-month lows. A measure of calm returned to financial markets gripped by fears of a sharper downturn in the global economy.
The decline by U.S. equities has also slowed, and this has supported the US dollar as it shows that the market’s economic prospects remain reasonably good with the Fed preparing to take a more dovish approach.
Meanwhile, British Lawmakers will now vote on a range of Brexit options later tomorrow, giving parliament a chance to indicate whether it can agree on a deal with closer ties to the European Union.
Closer to home, the Australian dollar is on bids around the intra-day high versus the US Dollar earlier this morning. The pair recently recovered as upbeat comments from the RBA’s assistant governor, joined hands with overall market risk-on sentiment after positive news from Brexit.
However, better than forecast New Zealand trade balance numbers and soft figures of weekly Australian consumer survey dragged the quote down afterward. With no more data on hand for publishing, traders may turn to the US-China trade deal developments in order to determine near-term market direction.
And that’s all from HFC bank for now…………..