In the morning Tokyo foreign exchange market on the 3rd, the dollar-yen pair is moving little. With Tokyo markets closed for a holiday and trading cues scarce, the pair continues to trade in a narrow range in the upper 157 level. Market participants are refraining from aggressive buying and selling as they wait to see the results of the U.S. midterm elections being held the same day.
The morning trading ranges were 157.79 to 157.96 yen for dollar-yen, 176.52 to 176.76 yen for EUR/JPY, and $1.1177 to $1.1197 for euro-dollar. In overseas markets the previous day, dollar-yen briefly rose to 158.00 yen, approaching the psychological 158 mark at one point, but the pair struggled to extend gains.
Following the previous day’s decline in U.S. long-term interest rates, the narrowing of the Japan-U.S. interest rate differential is being watched and could serve as a factor capping the dollar’s upside. However, heading into the morning of the 3rd, dollar selling receded alongside a rebound in U.S. yields, and the pair held firm. The euro, Australian dollar, Canadian dollar and Swiss franc also weakened against the dollar, with dollar buying dominating.
| Currency Pair | Morning Trading Range |
|---|---|
| Dollar-Yen | 157.79 yen – 157.96 yen |
| EUR/JPY | 176.52 yen – 176.76 yen |
| Euro-Dollar | $1.1177 – $1.1197 |
Note: Morning price action in the Tokyo market
The U.S. midterm elections will not only determine the balance of power in the Senate and House of Representatives but could also influence the direction of future fiscal policy and regulation, so investors are increasingly wary of market swings once results become clear. With Tokyo markets closed for the holiday and participants limited, price moves could widen as European and U.S. trading hours get under way.
finance.biggo.com