
USD/JPY outlook: Hawkish Fed recalibration pressures the yen
Stronger US growth momentum and rising Treasury yields are keeping USD/JPY pointed higher, even as Japanese policymakers try to limit the pressure building across domestic markets.
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Stronger US growth momentum and rising Treasury yields are keeping USD/JPY pointed higher, even as Japanese policymakers try to limit the pressure building across domestic markets.

Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.

AUD/USD slumps towards 70c as surging US yields and a stronger dollar overshadow Australian jobs data and the RBA outlook.

Over recent trading sessions, the Mexican peso has started to show signs of losing strength against the U.S. dollar. This can be seen in the performance of USD/MXN, which has gained more than 1.7% over the last three sessions, highlighting the dollar's renewed strength against the peso.

USD/JPY is now up by more than 500 pips from the low taken the day that Scott Bessent taunted markets, saying ‘you can bet against me if you want.’

Euro has fallen seven of the past nine sessions, with stretched momentum raising the stakes as EUR/USD closes in on a major inflection zone.

The US dollar continued to press higher deep into the European session, supported by the slump in the bond markets as yields broke out across the curve. Following the recent hawkish Fed rate hike, yield spreads between the US and the rest of the world has continually increased, and that motion continued today, helped in part by some forecast-beating US macro data and hawkish Fed commentary.

The trading week continues, and for now gold remains under notable pressure in the short term. This can be seen in the performance of XAU/USD over the last three trading sessions, where the metal has declined by more than 2.00%, bringing a bearish bias back into focus after it had lost momentum in recent weeks.

Bitcoin put in a massive rally over the past month and even as gold has remained in pullback, BTC/USD has continued to jump to fresh multi-month highs.

AUD/USD remains under pressure after breaking key trend support, with the latest decline putting the focus on the next major downside pivot.

EUR/USD and Nasdaq Price Outlook: Overbought/oversold momentum on hourly and daily time frames is raising reversal risks across the U.S. dollar, EUR/USD and Nasdaq after a strong weekly advance.

U.S. stocks are opening lower on Wednesday, pressured by higher crude oil prices and rising government bond yields, as investors await further developments from negotiations in the Middle East and ahead of a key U.S.-China summit.

The US dollar has extended its gains this morning, even if oil prices finished lower for the fifth consecutive day yesterday. Oil prices have bounced back in this first half of today’s session, causing a bit of pressure on currencies that rely on energy imports such as the euro, pound, Swiss franc, and Japanese yen. But it was the dollar that was exerting the most pressure, amid hawkish FedSpeak. Meanwhile, European indices and precious metals were also under a bit of pressure amid the strength of the dollar.
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