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USD/JPY keeps the red near session lows, below 109 00 mark ahead of US data

USD/JPY keeps the red near session lows, below 109.00 mark ahead of US dataNEWS | 5/20/2021 11:49:54 AM GMT | By Haresh Menghani A combination of factors prompted some fresh selling around USD/JPY on Thursday. Retreating US bond yields weighed on the USD and exerted some downward pressure. The risk-off mood underpinned the safe-haven JPY and contributed to the selling bias. The USD/JPY pair maintained its offered tone through the mid-European session and was last seen hovering near the lower boundary of its intraday trading range, below the 109.00 mark. The pair failed to capitalize on the previous day s goodish rebound of around 75-80 pips from the 108.55 region, or over one-week lows and met with some fresh supply on Wednesday. This marks the fourth day of a negative move in the previous five and was sponsored by a combination of factors.

Fed Hints at Future Taper; US Yields, Dollar Rise, Stocks Slump

1.3%.  Eurozone April Final Core CPI eased to 0.7% from 0.5% which matched March’s 0.5%. EUR/USD – The Euro slid 0.38%, reversing 4 days of gains, to finish at 1.2175 in late New York. This followed the release of the FOMC’s April minutes. The rise in the US yields and overall Dollar strength weighed on the shared currency. Speculative long Euro bets were forced to cover some of their positions. AUD/USD – Australia’s Battler slumped under the weight of the stronger Greenback and market’s risk-off mood. The Aussie closed at 0.7725 after hitting an overnight low at 0.77109. Australia releases its Employment report later today (11.30 am Sydney).

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