October 28, 2024 at 07:53AM
Here’s a snapshot of dollar pairs as we look to get European morning trade underway today:
USD/JPY is still higher by 0.6% but is well off earlier highs at the end of Asia trading around 153.50-60 levels, with the pair now easing back towards its opening gap higher of 153.23 on the day. The yen is the laggard following the Japan election results over the weekend, which saw the ruling LDP party lost its outright majority in the lower house for the first time since 2009.
Despite that, it’s not likely to materially change the political landscape though as outlined here.
Besides that, the dollar is keeping steadier after some light extensions to the earlier ranges in the handover from Asia to Europe. Higher bond yields is still something to take note of, with 10-year Treasury yields up 4 bps to 4.28%.
That is keeping the dollar in a relatively decent spot, keeping up the momentum from the weeks before.
Looking to broader markets, US futures are also sitting comfortably higher with oil prices down as Middle East tensions ease. Meanwhile, gold is also down slightly but not really backing off too much from its record highs in the previous week. The precious metal is down just 0.3% to $2,740 currently.
This article was written by Justin Low at www.forexlive.com.
