The US Dollar was steady versus the Japanese Yen, receiving support from the latest economic data out of the United States which was unexpectedly upbeat. The Dollar was also resilient in spite of the latest war mongering efforts from North Korea who launched yet another rocket test near Japan. Analysts say that market players are still waiting to see what the US government’s response to the launch will be before they take action on the greenback. Relief over Trump’s tax reform bill making it through committee also helped to brighten sentiment for the greenback.
As reported at 11:09 am (GMT) in London, the USD/JPY was trading higher at 111.572 Yen, a gain of 0.09%; the pair earlier hit a peak of 111.668 Yen while the low was set at 111.376 Yen. The EUR/USD was trading down at $1.1836, down 0.09%; the pair has ranged from a session trough of $1.18330 to a peak of $1.18829 in today’s session.
Traders Eye Budget Vote
Currency strategists say that while the Dollar is getting broad support, Treasury yields would need to see a significant rise in order for the greenback to break higher. 10-year Treasury notes have traded within a tight 4 bp range this week. Passage of the tax reform bill when it goes to a vote could help break through that range. However, it is still uncertain that enough votes will be found to pass the bill in its current form, which many experts say will be disastrous for middle class Americans.