The week is coming to an end, as the US dollar is the strongest among the major currencies. The Japanese yen is the weakest. The dollar's gains today were supported by stronger-than-expected Purchasing Managers' Index (PMI) data, which saw the services index rise to 55.1 versus 53.7 expected, and manufacturing rise to 51.7, higher than estimates of 51.0.
For USDJPY, it rose to the highest level since the peak reached in April when the price reached 60.208. Today's high price reached 159.774.
As we enter the new trading week in the USD/JPY pair, a move above the 160.208 level will take the pair’s price to the highest level dating back to 1990, where the highest level for this year reached 160.40. If we move above this level, USDJPY will be trading at the highest level since January 1987. These levels are progress due to more bullish momentum in the new week.
Of course, there is a risk that the Bank of Japan will intervene. When the price moved above 160.00 last time, the intervention sent the pair racing to 155.19 in no time. Another intervention move sent the price from 157.58 to 152.99. The current price falls between the two extremes that attracted intervention.
Today, BOJ and Japanese officials tried to convince the Japanese yen to rise (USDJPY fell), but they were not successful. Will they tend to be more direct next week?
During the trading week, the performance of the US dollar was mixed. The US dollar rose against the Japanese yen, the euro, the British pound, the Swiss franc, the Canadian dollar and the New Zealand dollar and fell against the Canadian dollar and the Australian dollar. Look at the major pairs:
- USD/JPY rose 1.51% (USD rose)
- EURUSD fell -0.11% (USD rises)
- GBPUSD fell -0.342% (USD rose)
- The US dollar rose against the Swiss franc by 0.46% (the US dollar rose)
- USD/CAD fell by -0.33% (USD fell)
- AUD/USD rose 0.38% (USD fell)
- NZD/USD fell -0.39% (USD rose)
The US dollar rose against the Swiss franc despite the Swiss Central Bank cutting interest rates this week by 0.25%. The Bank of England kept interest rates unchanged but the statement was somewhat dovish and preliminary PMI data was weak today.
In other markets today, US stocks ended the day on a mixed note. For the second day in a row, the Dow Jones closed higher (only marginally), while the S&P and Nasdaq fell.
Today's final numbers show:
- The Dow Jones Industrial Average rose 15.57 points, or 0.04%, to 39,150.34 points.
- The S&P index fell -8.55 points, or -0.16%, to 5,464.61.
- The Nasdaq index fell 32.23 points, or 0.18%, to 17,689.36 points.
The Russell 2000 small-cap index was up 4.64 points, or 0.23%, at 2,022.03.
During the trading week, the S&P and Dow Jones Industrial Average rose while the Nasdaq closed the week virtually unchanged:
- Dow Jones Industrial Average, +1.45%
- S&P, +0.61%
- The Nasdaq is up 0.48 points, less than 0.00%, but it is technically an up week by a small margin.
This week, the S&P and Nasdaq hit new all-time closing highs:
- The new all-time closing high for the S&P is 5487.02
- The Nasdaq's new high close now stands at 17,862.23
In the US debt market:
- Two-year return 4.736%
- 5-year return 4.276%.
- The return over 10 years is 4.257%.
- 30 year yield 4.399%
For the trading week:
- The two-year yield rose 2.9 basis points
- The five-year bond yield rose by 3.6 basis points
- The 10-year bond yield rose by 3.4 basis points
- The yield on 30-year bonds rose by 4.9 basis points
thanks for your support. Have a nice weekend