US FX Handover: Yen Tops Again as High-Stakes Trade Talks Kick Off
Matt Weller, CFA, CMT May 8, 2019 9:52 PM
- Trump tweets that China’s Vice Premier Liu He is coming to the US “to make a deal,” boosting hopes of a potential trade deal this week (and by extension, risk assets). That said, traders are cautious after a Reuters report that China backtracked on all of its previous trade commitments. See why the outcome of this week’s trade talks may be a binary event for pairs like AUD/JPY and USD/CNH.
- The Japanese yen was the strongest major currency for the second consecutive day, with USD/JPY peeking below 110.00 before stabilizing just above that level through today’s US session.
- The pound (ongoing Brexit uncertainty) and kiwi (RBNZ rate cut) were the weakest major currencies on the day.
- Gold closed roughly flat on the day but could be a big beneficiary if US-China trade talks fail to reach an agreement.
- Chinese inflation figures for April (CPI and PPI) will be the major economic data to watch in today’s Asian session trade.
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