Will the yen's weakening trend continue?

Will the yen's weakening trend continue?

10.05.2021

Last weekend, the Dow Jones Industrial Average and the S&P 500 hit all-time highs, with the market characterized by rising stock prices, a weaker U.S. dollar, and flat interest rates.The Dow Jones Industrial Average closed at $34,777, up 0.66% from the previous day. Meanwhile, as the U.S. dollar weakened, gold continued its upward trend, rising from $1,810 to $1,840. The yield on the 10-year U.S. Treasury note is hovering around 1.59%.

In the foreign exchange market, the CAD/JPY pair plummeted following the release of Canadian employment data on the 7th last week, falling from 89.7 to 89.0. However, it rebounded during today’s Asian trading session. The CAD/JPY pair has now recovered to the level seen before the sharp drop triggered by the employment data and is poised to hit a new high for the year around 89.8. Meanwhile, the USD/JPY pair is attempting to rise and is currently trading around 108.8.

Today, Turkey’s unemployment rate is scheduled for 4:00 PM, the UK’s Halifax house price index for 4:30 PM, and remarks by Charles Evans, President of the Chicago Fed, for 3:00 AM. Aside from these, no other major economic indicators are scheduled for today. Since there are no notable economic releases this week, trends that have already emerged may continue, so we will need to closely monitor price movements with caution.