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Date:
09th Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

USD Buyers in charge, USD/JPY Rockets as Euro Slides

Technical candlestick arrangement favors USD bulls. As of Mar 9, the USD/JPY is rocketing higher, breaking above the psychological 108 level versus the Yen. Meanwhile, the emergence of determined greenback bulls also pushed the Euro lower back to Nov 2020 levels. Several fundamentals, chief among them being rising bond yields and hopes of a faster economic recovery, combine to offer support for the greenback. As a result, the currency has the upper hand against both the exotic and major currencies.


Details: 

The yields of long-term U.S. government bonds continue to climb higher, causing an across-the-board value recalibration that ultimately benefited the greenback. Even though bond yields are rising and the U.S. economy looks like it's heating up, the FED, through Jerome Powell, isn't intervening. In their view, bond yields are only among the many variables they track that warrant rate changes and perhaps a tapering of the current QE. Consequently, the USD is performing exemplary versus the JPY, forcing the Euro even lower. Figures from the ECB reveal a higher demand for bonds, keeping yields lower.


Impact on the USD: 

Bullish. Better coronavirus distribution, a recovering economy, and a relatively stronger labor market all boost the greenback. The currency is now bottoming up, and may print higher due to economic data streams.


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