USD/JPY erases yesterday’s drop
The dip buyers are in charge today as the S&P 500 extends today’s gain to 77 points, or 2.3%. It’s made several marginal new highs throughout North American trading in a steady gring higher after the opening pop.
The gap from yesterday’s open extends to 3428 from the current level at 3409.
USD/JPY has erased the drop from yesterday that started midway through European trading. The pair is now up 23 pips to 106.26. It’s not the most-volatile pair at the moment but I think that however this range plays out takes the market with it.
The next hurdle will be a Treasury auction of 10-year notes at the top of the hour. US 10s are up 1.1 bps to 0.69% after falling as low as 0.66% overnight. The market has had some trouble swallowing the huge auction sizes lately.