In the NY FX market summary, dollar-yen plunged from the mid-¥158 range to the mid-¥157 range. The dollar moved lower as falling U.S. Treasury yields and rising oil prices weighed on it.
In today's NY FX market, dollar-yen was seen plunging during NY trading from the mid-¥158 range to the mid-¥157 range amid selling on rallies. Despite the rise in oil prices, the dollar was pushed lower after U.S. Treasury yields turned down.
The decline in Treasury yields was attributed to President Trump's statement that the U.S. would hold off on attacking Iran until the midterm elections were over, as well as solid demand at the 30-year Treasury auction held the same day. Signs that selling in long-term Treasuries was pausing also began to emerge, prompting speculation that buybacks could develop.
Euro-dollar traded in the lower half of the $1.12 range before dollar strength eased during NY trading and it was bought back into the $1.11 range. Euro-yen was being pushed back toward the ¥176 range, with upside remaining heavy. Concerns about the outlook for U.K. GDP were reported for the U.K. economy, and it was suggested that monthly GDP in August was highly likely to contract by 0.1% month on month.
Economists expect this year's GDP to average around 0.5% per quarter and believe the economy is on track to achieve growth of around 0.4% to 0.5% in the third quarter, while pointing to the risk of slower growth from the fourth quarter onward.
Future points of focus include the possibility that the euro could be affected by the pace of inflation, rising interest rates and labor-market developments.