The US dollar fell during the Asian session to witness its rebound to the third session from its top since February 21 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected today by the American economy and with investors' evaluation of the stimulus in the face of repercussions Corona virus spread globally.
At 05:40 am GMT, the US dollar pair fell against the Japanese yen by 0.50% to 110.65 levels compared to the opening levels at 111.21, after the pair achieved its lowest level during the trading session at 110.46, while achieving the highest at 111.30.
On the Japanese economy, we followed the disclosure of inflation data with the release of the annual services price index, which showed a slowdown in growth to 2.1% versus 2.3% last January, worse than expectations at 2.2%. Otherwise, we followed yesterday called for a city governor Tokyo Yoriko Koike to city residents to avoid unnecessary outings on weekends, avoid crowded places and refrain from going out at night.
The Tokyo Governor Koike also urged residents of the Japanese capital to work from home as much as possible, and this came after the announcement of 41 new cases of corona virus being recorded in Tokyo and that the total cases in Japan reached 1,193 cases, while the deaths reached 43 people, and we followed up last Tuesday, the Prime Minister Japanese Shinzo Abe said he agreed with the International Olympic Committee to postpone the Olympics for a year to be held next year.
On the other hand, investors are currently awaiting by the US economy the disclosure of the GDP reading, which may reflect the stability of the expansion of the largest economy in the world at 2.1% unchanged from the previous initial reading for the fourth and third quarter of the past, as the reading of the same index measured by prices may reflect stability Growth at 1.3%, unchanged from the previous first reading, and against growth of 1.8% in the previous reading for the third quarter.
This comes in conjunction with the issuance of the reading of the benefit requests index for the last week on March 21, which may reflect an increase of 1,367 thousand applications to 1,648 thousand applications compared to 281 thousand requests in the previous weekly reading, as the reading of the continuing benefit requests for the last week may appear on the 14th of This month, an increase of 81 thousand requests to 1,782 thousand requests compared to 1,701 thousand requests in the previous reading.
This also comes in conjunction with the release of the merchandise trade balance index, which may explain the deficit narrowing to $ 64.5 billion compared to $ 65.9 billion in January, and with the disclosure of the initial reading of the wholesale inventory index, which may reflect a decline in the decline to 0.2% compared to 0.4% In January, otherwise, we followed yesterday the White House announcing that it had reached an agreement with Senate leaders on the stimulus package, estimated at $ 2 trillion.
Other than that, yesterday we followed the statements of the Director-General of the World Health Organization, Tidros Adhanum Gebresus, through which he expressed that children are vulnerable to infection with the virus (COVID-19) or what is known in the media as Coronavirus like the rest of the people, explaining that it is the global solidarity to face this serious threat and that The world is preparing for more severe measures to confront the coronavirus.
The Director-General of the organization, Gebrissos, also mentioned that precautionary measures should be taken, such as preventing gatherings and travel in addition to tracking and monitoring infected cases, adding that medical and health personnel, especially in poor countries where the virus is easy to spread, must be protected, according to the latest figures issued by the organization, so the number of cases has increased Infected with the virus to nearly 417,000 and 18,589 people were killed in 196 countries.
The dollar against the yen trades stable without resisting the descending channel, and today begins today with a noticeable decline away from this resistance, which keeps the downside scenario valid and effective during the upcoming sessions, supported by the stochastic negativity, waiting for the 109.06 level to be tested initially.
On the other hand, we should note that breaching 111.25 and holding above it will stop the negative scenario and lead the price to the upside move.
The expected trading range for today is between 109.50 support and 111.40 resistance.
Expected trend for today: bearish.