Forex Marketz Daily Forex News – Fully Markets Update
This morning during Asian trade hours, the safe haven Japanese yen lost some round. There is some optimism that the United States and China could start negotiations on trade. This has helped to ease fears about a trade war. In return, this bolstered demand for riskier assets.
Global financial markets were shaken last week. This came after President Donald Trump moved to impose tariffs on Chinese goods. This initiated trader concerns of a trade war between the world’s two largest economies. Now, new reports are surfacing, that the president is leaning towards a slightly more calibrated approach.
Chinese Premier Li Keqiang said, yesterday, that China and the United States should start negotiations. He reiterated a pledge to ease access for American businesses.
The reports reduced investor concern over U.S.-China trade tensions. This buoyed investor appetite for riskier assets. In the United States, overnight, Wall Street saw its best day in two and a half years. The Dow Jones Industrial Average had its third biggest point gain ever.
The Yen Recedes as Safe Haven Appeal Lessens
The Japanese yen, viewed as a safe haven currency in times of market turbulence and economic uncertainty, retreated this morning, a bit, thanks to the investor revival in risk appetite.
With the USD/JPY Forex market recover, as he yen is on the defensive, the dollar rose 0.2 percent to 105.59. The dollar has revoked after hitting a 16 month low of 104.56. This was seen on Monday.
The euro, in the JPY market rose 0.2 percent against the Japanese currency to 131.49. The euro rose 1.4 percent yesterday for its biggest single day percentage gain since June 2017.
Against the dollar, the euro was fetching $1.2449. This is up 0.1 percent from late North American trade, overnight. The euro is now near Monday’s high of $1.24615. This is the euro’s highest price point since mid-February.
