- Risk aversion drives the Japanese yen across the board.
- Wall Street indices extend losses, the Dow Jones falls 1.45%.
- GBP/JPY falls to 151.65, remains under pressure.
The pair GBP/JPY it accelerated the decline as risk aversion intensified and fell to 151.65, the lowest level since December 22. The yen is rising across the board.
Putin speaks, the ruble falls, the yen rises
The Russian invasion remains the most important driver for the markets. The last headline featured a report mentioning that Vladimir Putin told German Chancellor Scholz that Russia is open to dialogue, adding that Ukraine should meet all demands.
US stocks are extending losses ahead of the weekend despite positive US jobs numbers. Dow Jones down 1.45% and Nasdaq down 1.95%. The flight to quality is boosting Treasury yields and the Japanese yen. The Russian ruble is now falling more than 10% against the US dollar. USD/RUB reached an all-time high at 125.00.
The US 10-year yield stands at 1.80%, near the weekly low, while the 30-year yield stands at 2.13%. The drop in yields pushed USD/JPY below 115.00, giving the best-performing Yen more momentum.
The pound was also further weakened by the rally in EUR/GBP. The cross recovered from the lowest level since 2016 and is back above 0.8250.
GBP/JPY is about to post its third consecutive weekly decline and is trading 300 pips below its level a week ago, below the 20-week simple moving average.
Technical levels
Source: Fx Street
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