Concerns over escalating U.S.-China confrontation and risk-off moves due to a softening U.S. stock market led to three consecutive days of declines for the dollar/yen.
【10/16Market Overview
In Tokyo time, the USD/JPY pair moved as Finance Minister Kato stated that there is “a rapid movement toward a weaker yen.” Also, as Bank of Japan Governor nominee Tamura hinted at further rate hikes, yen buying led the way, briefly150.51yen to were seen to fall to; thereafter, with no follow-up selling and supported by the Nikkei’s firm performance, the pair was bought back to around151.23yen. In European session, USD/JPY rose due to the increase in U.S. 10-year Treasury yields151.39yen. In U.S. time, 10month U.S. Philadelphia Fed manufacturing index came in▲12.8 versus expectations of10.0, which led to broad dollar selling and a risk-off flow into yen and dollar selling. As concerns over U.S.-China trade tensions and banks’ lending in the U.S. intensified, U.S. stocks were soft, and the USD/JPY fell to around150.21yen.
【10/17Market View
