Yen climbs into the monthly close

Forex news for US trading on February 28, 2018


  • Gold flat at $1317
  • WTI crude down $1.53 to $61.48
  • US 10-year yields down 2.7 bps to 2.866%
  • S&P 500 down 24 points to 2719
  • JPY leads, GBP lags

The yen stormed higher across the board as the selling of yen crosses into the London fix foreshadowed another stock close in stock markets.

GBP/JPY was particularly hard hit as it fell below the 200-day moving average and the February low. Worries about Brexit have begun to resurface, something we warned about yesterday. Cable also sank below the early-February low in a negative development. It fell more than 140 pips to 1.3769 in a stead decline that started in Europe.

USD/JPY was hit by a wave of selling as New York arrived. it took the pair out of a stable range just above 107.00 down to a low of 106.57. In the bigger picture, the consolidation around 107.00 is continuing for the second week.

EUR/USD also touched the lows of February and broke support in the process. The pair fell 35 pips on the day in a grind lower, punctuated by selling into the London fix.

USD/CAD continued to sizzle in a rip up to 1.2837. The softness in oil driven by US inventories helped to push the pair and it’s now within striking distance of the late-2017 triple top just above 1.2900.

AUD/USD is the last of the big pairs that’s threatening the Feb low. The Aussie is just above the 0.7750 key level after falling a quarter-cent today. A busy calendar in the day ahead or the turn of the month could be drivers.

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