10-year Treasury yields fall by 3.1 bps to 3.093%
Equities have pared almost all of their gains on the day with E-minis trading near flat levels right now and we’re also seeing Treasury yields fall led by the declines seen in the short-sterling market.
As a result, the yen is benefiting from this as it moves higher across the major bloc. USD/JPY has been brought to a low of 113.30 on the session, matching the low seen in yesterday’s trading.
Raab’s resignation may not have much to do with other currencies or bond markets directly, but it’s the mere sense of uncertainty that it presents as highlighted earlier. It’s more of a case that the element of uncertainty makes it tough for market participants to get a good read on what is going to happen next so flows are going into haven assets instead.
And that’s what we are seeing here in USD/JPY price action and for yen pairs in general. There’s some support to come from the July high @ 113.17 but I’ll be watching the 113.00 handle closely as that is where the upwards support trendline for the year lies: