USDJPY diverges from the bond market

10:58 AM 10 February 2020

USDJPY fx pair is usually strongly correlated with the TNOTE (correlation is negative therefore TNOTE chart is reversed). We saw that throughout 2019 but this years these markets have diverged strongly. Strong TNOTE seems to reflect risk aversion and at the same time high USDJPY rate reflects sanguine moods on equity markets. One would assume that such contradicting market behaviours may not persist and these instruments could converge again. This could happen via USDJPY decline, TNOTE declines or a combination of the two.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits