Japanese Yen, US-China Trade War – TALKING POINTS
- The Japanese Yen is starkly aloft vs vital G10-peers
- AUD, NZD, NOK, SEK all humour amid risk aversion
- Crude oil prices, SP 500 futures opening lower: what next?
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The Japanese Yen is starkly aloft opposite a vital counterparts as US-China trade fight tensions light adult and are now echoing into Asia. Cycle-sensitive currencies like a Australian and New Zealand Dollars along with a Swedish Krona and Norwegian Krone are holding a brunt. Crude oil prices and SP 500 futures gapped reduce early into a event and will expected brief over into APAC equities.
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USDJPY draft combined regulating TradingView
On Friday, US President Donald Trump tweeted several additional tariff measures Washington will levy opposite China. The initial is an boost of a $250 billion levy – set for Oct 1 – from 25% to 30%. The second tariff boost on $300 billion for Sep was lifted adult from 10% to 15%. Tensions between Beijing and Washington continue to light adult opposite a backdrop of a negligence tellurian economy.
The outcome of a ongoing trade fight – and now another probable front opposite a Atlantic – has shredded marketplace confidence, hampered cross-border investment and sapped ceiling inflationary pressure. Against a backdrop of slower tellurian expansion – in vast partial due to ongoing trade wars opposite a world – a reward has been placed on anti-risk resources as traders change from chasing yields to preserving capital.
Looking ahead, marketplace participants will be closely examination how China competence retaliate. Beijing has a series of collection during a disposal, one of that is utilizing a rare-earth vegetable anathema that could exceedingly interrupt a tech supply sequence for vital companies like Apple. Traders will also be closely examination a announcement of GDP information out of a US and several core European economies. If a reports tumble short, it could amplify risk hatred and strengthen a Yen.
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— Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To hit Dimitri, use a comments territory next or @ZabelinDimitrion Twitter