New chapter in the trade war saga - now its Japan under fire

Ross J Burland FXStreet

While we start to get somewhere with NAFTA, we are now turning another page for a fresh chapter and that is US and Japanese trade talks.

Reuters is quoting an unnamed source informing the public domain the talks will commence between Japan's economy minister Motegi and US Trade representative Lighthizer on the 21st of this month, September.

USD/JPY has so far been more about the dollar leg when it comes to trade, but Trump has already been quite vocal about the yen's weakness and its persistent trade surpluses with the US. There have already been complaints by the Japanese to the World Trade Organization about US tariffs on imported steel and aluminium but Trump's recent commentary has put the auto industry, being Japan's flagship industry, into the spotlight.

Wall Street Journal columnist James Freeman said he had spoken to Mr Trump on the 6th Sep and in that conversation, he said, Mr Trump described his good relations with the government of Japan, but added: “Of course that will end as soon as I tell them how much they have to pay" the FT wrote.

However, Japan, unlike China, is a strategic partner and ally of Washington so there is more at stake here - The Pacific - ultimately Tokyo and Washington will have to find common ground.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD holds above 0.7050 as hot CPI boosts RBA hike bets

The AUD/USD drifts higher by 0.40% on Wednesday after the Federal Reserve held rates unchanged, while Fed Chair Kevin Warsh hinted that "officials had made clear our readiness to act as circumstances require, and we have shown our willingness to act.” The AUD/USD trades at 0.7053.

USD/JPY: Japanese Yen recovers modestly as Warsh reaffirms Fed’s 2% target

The Japanese Yen recovers some ground against the US Dollar on Wednesday after Federal Reserve Chair Kevin Warsh crossed the wires, saying the FOMC will deliver price stability and is committed to the 2% inflation goal. USD/JPY trades at 157.89, down 0.02%.

Gold declines to near $4,050 after Fed rate hold, markets await US PCE data

Gold price edges lower to around $4,050 during the early Asian session on Thursday. Markets assess comments from Federal Reserve Chair Kevin Warsh after the US central bank left benchmark interest rates unchanged at its October policy meeting.

Bitcoin volatility falls to 2023 lows, Glassnode says

Bitcoin climbed above $81,000 on Wednesday as the Federal Reserve (Fed) kept interest rates unchanged at 3.75%–4.00% in a 10–2 vote. The decision came as the top crypto's realized volatility fell to levels last seen in the summer of 2023.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.