USD weakens against major rivals

USD weakened against a number of other currencies yesterday and during today’s Asian morning. Analysts, cite the drop of the Philly Fed Business index yesterday, as the main reason for the USD slipping. The weak Philly index could have reinforced fears that trade wars would hurt the US economic outlook and negatively affected the mood of the market towards the greenback. Also the drop could have contributed to the slight weakening of the US 10 year treasury yields adding further pressure to the USD. Should the yields continue to drop we could see USD continuing to slip for the next few days.

USD/JPY dropped yesterday aiming for the 109.75 support line, reflecting the weakening of the USD. We could see the pair, trading in a sideways manner today, however bearish tendencies could occur. Should the pair come under intense selling pressure, we could see it breaking the 109.75 support line and aim for the 109.25 support barrier. Should it find buying orders along its path we could see it breaking the 110.25 resistance line and aim for the 110.75 resistance hurdle.