The Japanese yen has posted losses in the Monday session. In the North American session, USD/JPY is trading at 110.46, down 0.04% on the day. In economic news, there are no data releases out of the U.S or Japan.
Is the yen headed below the 110 line? This last occurred in late June, but recent losses in USD/JPY could send the pair into 109-territory as early as this week. The yen has posted gains of 1.2% in August, with the currency benefitting from the risk apprehension due to the rash of tariffs that the U.S has slapped on its major trading partners, including Japan. However, there is some hope that things are on the mend, as the U.S and China have agreed to hold low-level trade talks this week in Washington. Traders shouldn’t expect a dramatic breakthrough, but the fact that the two sides are talking has investors cheering. The U.S is unhappy with the Chinese protection of local markets and technology transfers required in order for U.S businesses to operate in China, but it’s questionable if the Chinese will show much flexibility. Both sides have slapped tariffs of $34 billion on each other’s products, with another $16 billion in tariffs scheduled for August 23. If the talks show some progress, such as the cancellation of the upcoming tariffs, we could see some volatility from the currency markets.
Written by Admin
Michael Sonnenshein, chief executive officer of Grayscale Investments LLC, speaks virtually during a Crypto Summit ...