Should we be wary of a decline in cross-yen pairs?
19.04.2021
- Canada: Housing Starts
- Cross-yen pairs opened with a slight gap down
Last weekend saw a risk-on market characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. The German DAX, which posted the largest gain, closed at 15,459, up 1.34% from the previous day, setting a new all-time high. The U.S. market also entered a bull market, with the Dow Jones Industrial Average and the S&P 500 hitting new record highs for consecutive days.In tandem with the rise in stock prices, the yield on the 10-year U.S. Treasury note has fallen to 1.56%.
In addition, the decline in Bitcoin, a cryptocurrency, has been particularly notable. BTC, which had briefly reached $70,000, fell below $60,000 and dropped to the $58,000 range. In the foreign exchange market, the U.S. dollar is weakening; USD/JPY has fallen to 108.4, and other yen crosses are also showing a slight downward trend.The euro/yen pair has fallen from 130.2, breaking below the key 130.00 level to reach 129.7. The pound/yen pair has declined from 150.5 to 150.0 during today’s Asian trading session.
Today, the Canadian housing starts report is scheduled for release at 9:15 PM; other than that, no major economic indicators or statements from key figures are expected. Since prices can fluctuate significantly when there are no major economic releases, we will closely monitor price movements while remaining vigilant for sudden changes in volatility.
Author: Keisuke Sakurai
