- The yen favors a fall in equity markets.
- The DXY rises to highs in months, but loses strength in the European session.
The USD / JPY is falling on Thursday and cut losses in the last hour. The pair went from nearly a week high at 110.22, to plummet to 109.47, amid fears in equity markets and a soaring volatility index.
Both the dollar and the yen are being favored by the negative climate in the markets, although the Asian one is the one that advances the most. Wall Street futures point to an open with falls around 0.60% on average after Wednesday’s decline. In Europe, the main squares lose more than 1.5%.
In the last hour there was some stability that favored the rebound of the USD / JPY from the zone of 109.50 to 109.70. At the same time, the dollar index (DXY) lost part of the gains and stands at 93.35, after having reached 93.50, the highest since November.
Fears about the advance of coronavirus cases in the world, together with the message from the Federal Reserve in the minutes, with the possibility of a cut in the purchasing program before the end of the year, were factors that favored the drop in bags. Data on unemployment benefits for the US and the Philly Fed will be released later on Thursday. In Japan, the inflation figure for July will be released on Friday.
Technical levels
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