As of August 26, 2024, the Japanese yen is gaining strength, bolstered by the dipping US yields. The People’s Bank of China announced a USD/CNY central rate of 7.1139, while Japan’s Nikkei 225 Index experienced a plunge of nearly -1.00% at the trade’s outset. Concurrently, Crude oil is gaining momentum as the trading week commences.
The yen’s strength is attributed to investors seeking a safe haven in JPY amid US market uncertainties. These fluctuating markets reflect the aftermath of the Covid-19 pandemic, which continues to affect the global economy.
Depreciating US bond yields are prompting investors towards alternatives such as the yen. Coinciding with this, Japan’s Nikkei 225 Index has seen a downturn. Also, China’s yuan is experiencing volatility with the current rate at 7.1139 against the US dollar.
Crude oil prices are surging, potentially indicating a recovery of the eventual global economy. The trend suggests a demand surge, encouraging as nations reopen and economic activity resumes post-pandemic.
Discussions in Gaza, taking place over the UK bank holiday, concluded without significant resolutions.
Yen gains amid US market instability
Major US companies Salesforce, Dell, and Nvidia are expected to report their financial performance soon.
The market remains calm following the Jackson Hole Summit, with a confirmed rate cut for September. Market watchers are observing the global impact of this rate cut. Shifts in US job data, due to report on September 6, could affect this decrease’s expectation.
Market stability encourages caution among traders. Geopolitical tensions, economic releases, and the ongoing pandemic could potentially trigger substantial movements. In such subdued conditions, traders lean on technical analysis.
US yields have decreased slightly, whereas crude oil prices are on the ascent, partly due to a recent bombing in Israel. In the backdrop, Gold prices increase as investors look for safer havens. Attention is directed towards key economic news releases including US core PCE data, weekly US initial job claims, and durable goods data. Major corporations like Nvidia, Salesforce, Crowdstrike, and Dell are due for quarterly earnings releases.
