Talk of US-China trade truce powers USD/JPY above 108.00
- USD/JPY is better bid likely on reports of US-China trade truce.
- With Asian stocks witnessing risk reset, the anti-risk JPY has come under pressure.
The anti-risk Japanese Yen is losing ground, pushing the USD/JPY higher possibly due to reports the US and China have agreed to another truce in their trade war.
South China Morning Post published a report about 30 minutes ago stating the world's two biggest economies have agreed to a tentative truce ahead of the G-20 meeting, paving way for a fresh round of negotiations. More importantly, the US is said to have delayed
So far, neither the White House nor the Office of the US Trade Representative has commented on the reports. The risky assets, however, seem to have picked up a bid in response to the trade truce news. As of writing, the futures on the s&P 500 are up 0.32 percent and the Chinese stocks are reporting a 1 percent gain.
Notably, the USD/jPY pair has added about 30 pips in the last thirty minutes. At press time, the currency pair is trading at 107.98, having hit a session high of 108.03 a few minutes ago.
Looking forward, the pair may remain bid in Europe, courtesy of the temporary pause in the Sino-US trade war. Big gains, however, look unlikely, as the previous talks had collapsed suddenly and investors may avoid being overoptimistic this time.
After all, stakes are high this time as President Trump has promised to impose tariffs on all Chinese imports if the weekend's talks go poorly.
Pivot levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
