EUR/JPY rises to 121.00 as S&P 500 futures rise on US-China trade deal hopes
|- Investors are buying risk on fading US-China trade tensions.
- EUR/JPY has added more than 25 pips on reduced haven demand for Yen.
Risk assets are getting an extra leg higher in the Asian session with the US reportedly considering removing substantial amount of penaties imposed on Chineses imports, according to FT.
The futures on the S&P 500 are currently adding 0.17% and the anti-risk Japanese Yen is losing ground.
At press time, EUR/JPY is trading at session highs near 121.04, representing a 0.17% gain on the day.
The currency pair picked up a bid near 120.75 on reports the US is considering removing some tariffs on $112 billion worth of Chines imports. Beijing is pressing the US to remove the tariffs in exchange for agreeing to buy up to $50 billion worth of US farm goods within two years and implement commitments to open its financial services sector and increase intellectual property protections, according to Politico.
Beijing is also asking the US to remove the 25% tariff removed or at least trimmed to 12.5% on an additional $250 billion worth of Chinese goods.
The latest news will likely reinforce investor belief that a phase one trade deal between the United States and China is coming.
The risk assets, therefore, could continue to gain ground during the day ahead - more so, if the Caixin China Services PMI, due at 01:45 GMT, blows past expectations.
Technical levels
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