The USDJPY pair bulls took a break around 115.10, after a move up to revive the multi-month top during early Wednesday but the yen pair fights to extend the two-day advances amid a pullback in the US Treasury yields. The US 10-year Treasury yields retreated from the highest levels since October 22, down 0.8 basis points around 1.65% at the latest, amid a lack of economic data. The yields soared to the monthly peak the previous day before the mixed US data paused bond bears.
The US Markit PMIs released mixed numbers for November as the Manufacturing activity gauge climbed past expectations and prior but not the Services index, which in turn weighed on the Composite figures. Furthermore, the US Richmond Fed Manufacturing Index crossed the expected figure of 5 but stayed below 12 previous readouts to 11 for November.
In Japan, Preliminary Jibun Bank Manufacturing PMI for November crossed 53.2 previous reading but stayed below 54.5 market forecasts to print 54.2 figures. Given the consolidation in the yields, coupled with the wary mood ahead of the key US data, USDJPY may see some further pullback. Tonight, the latest FOMC Meeting Minutes and October core PCE inflation are important considering the increased expectations of the Fed rate hike.
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