CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

USDJPY jumps on vaccine progress

Article By: ,  Financial Analyst
November 9, 2020 4:49 PM
The US Dollar was bearish against most of its major pairs on Monday with the exception of the CHF, JPY and EUR. On the US economic data front, no major economic data was released. In other news, over the weekend Democratic Presidential nominee Joe Biden declared victory in the 2020 Presidential election.  

On Tuesday, the National Federation of Independent Business's Small Business Optimism Index for October is expected to increase to 104.2 on month, from 104.0 in September. Finally, the Bureau of Labor Statistics' Job Openings for September is expected to rise to 6,500 on month, compared to 6,493 in August.    

The Euro was bearish against most of its major pairs with the exception of the CHF and JPY. In Europe, The German Federal Statistical Office has posted September trade balance at 20.8 billion euros (vs 16 billion euros surplus expected). Separately, Europe Sentix Investor Confidence for November was released at -10, vs -15 expected and -8.3 in October. Also, Bank of France Industrial Sentiment for October was published at 97, vs 90 expected.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.

One of the most active pairs on Monday was the USD/JPY which jumped 201 pips amid a U.S. market rally on hopes of a coronavirus vaccine from Pfizer (PFE) and BioNTech SE (BNTX) after their vaccine trials were found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior COVID-19 infection.

Looking at a chart of the USDJPY, The pair surged off of 103.18 support however price action remains contained inside a declining trend channel. Key resistance has been identified at the 106.10 level. A break above could have strong bullish implications. For now, the preference is to ride the trend lower ultimately reaching the 102 support level. 



Source: GAIN Capital, TradingView

Happy Trading

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024