US-Japan deal 'boosts equity markets' globally but USD trades flat
|The dollar sold-off against most currencies yesterday. While we largely attribute this to market jitters ahead of the pending tariffs deadline, a hangover from Fed independence concerns may also be partly at play.
News of the US-Japan deal has boosted equity markets globally, but the yen has found gains harder to come by, probably a result of the weekend’s upper house election, which has acted to dampen expectations for Bank of Japan rate hikes.
Meanwhile, the dollar has traded largely flat against its major peers since the breaking of the news, possibly as market participants await details on the state of negotiations elsewhere before committing to sizable positions.
Macroeconomic news out this week will be almost entirely overlooked in favour of trade developments. Tomorrow’s jobless claims and business activity PMI figures could receive some attention, but in reality we don’t expect much reaction in the dollar.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.