So far, the short-term trends remain intact in the markets. The USDJPY pair continued to rocket higher, but US stocks declined again during the London session Monday.

US traders are off today, celebrating Columbus Day, while Canadian traders enjoy a break from trading due to Thanksgiving Day. Therefore, liquidity will most likely be only minimal today, possibly resulting in only small volatility. 

On Friday, US yields surged notably, pushing the 10-year yield above the 1.6% threshold for the first time since early June. Hand-in-hand went the USDJPY pair, and it soared toward 113, reaching levels last seen in December 2018. 

However, the USD is trading weaker against other major currencies following a fragile NFP print on Friday. The jobs report was the lowest this year, with only 194,000 nonfarm jobs added last month, well below expectations. On the other hand, the unemployment rate improved further, along with wage growth, softening the blow from a dismal NFP number.

Precious metals initially surged after the data, but since the USDJPY and US yields roared higher, they were sold off notably, posting large bearish pin bars on the daily chart. Therefore, the short-term trend could remain bearish for metals. 

A much better situation is seen in the oil market as the WTI benchmark managed to quickly push above the critical 80 USD handle, adding more than 2% today and trading at the highest price since October 2014.

Source: https://www.axiory.com/usdjpy-surges-but-dollar-trades-lower-in-general

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About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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