Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Dollar/Yen is trading higher on Tuesday as buyers return following Monday’s U.S. bank holiday. Treasury yields are on the upswing again after the one-day reprieve and so is demand for risky assets with U.S. stock indexes continuing to hover near all-time highs.

Helping to boost demand for the safe-haven Japanese Yen during yesterday’s session were renewed concerns over the trade deal after President Donald Trump said over the week-end that trade talks with China were moving along “very nicely” but the United States would only make a deal with Beijing if it was right for America.

The president also said there had been incorrect reporting about U.S. willingness to lift tariffs on Chinese goods. Officials from China and the United States last week said the two countries had agreed to roll back tariffs already in place in a “phase one” trade deal.

Hong Kong Drives Investors into Safe Haven Yen

Investors were also rattled enough by renewed political turmoil in Hong Kong, which drove some to seek shelter in the relative safety of the Japanese Yen. Investors were moved by violence on Monday amid unrest in the embattled city. A protester was left in critical condition after being short by police Monday morning local time. Separately, another man was also in critical condition after he was doused with what people described as “flammable liquid” and set on fire.


Boston Fed’s Rosengren Sees U.S. Economy ‘In Pretty Good Shape’

In U.S. news, Boston Federal Reserve Bank President Eric Rosengren on Monday said the U.S. economy is in good condition and nothing he has seen in recent data would change his view that the Fed’s latest interest rate cut was not needed.

“I view the U.S. economy as in pretty good shape right now,” Rosengren told Reuters following a speech in Oslo. Gross Domestic Product “looks like it is going to be growing around potential.”

“The U.S. economy is in good enough shape that I dissented at the last meeting,” he said. “I did not think the last cut was necessary, and I certainly think that there is nothing that has come in since that meeting that would change my view.”

Japan Economic News

Japan October preliminary machine tool orders came in at -37.4% versus -35.5% year/year prior. This shows that export orders continue to slump and reaffirms the weakness seen in the global manufacturing sector. Japan is no exception to that and this will feed into another sluggish economic performance in the final quarter of the year.

Japanese government bond (JGB) prices fell on Tuesday after a poorly received auction of 30-year debt sparked concern about demand for longer-dated bonds.

The 30-year JGB yield rose 2 basis points to 0.470%. Earlier on Tuesday, Japan’s finance ministry auctioned new 30-year bonds. The bid-to-cover ratio was lower than the previous auction last month, a sign of weakening demand.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.