USD/JPY lost a lot of ground after Trump canceled the Summit with North Korean Leader Kim. But it is also about the trade wars.
Here is their view, courtesy of eFXdata:
BTMU Research discusses the JPY outlook and notes that it has rebounded sharply this week with USD/JPY falling back below the 110.00-level after recently hitting an intra-day high of 111.40.
“The yen has derived support from more risk averse trading reflecting a combination of heightened concerns over Italian political risks, more uncertainty over upcoming talks between North Korea and the US, and some renewed concerns over downside risks posed to the global growth outlook from a shift to more protectionist US trade policies.
…The developments have highlighted that the risk of a global trade war remains real even if market participants remain optimistic that it is more likely to result in better trade deals. The yen remains a key barometer of global trade war risk,†BTMU argues.
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