News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • While Bitcoin is really buried into that support at the moment, Ethereum has been more range-bound of recent and as of this writing, price is not quite close to range support. Get your market update from @JStanleyFX here:https://t.co/zKcph0iMG2 https://t.co/36l0wHfbPx
  • 🇰🇷 Consumer Confidence (SEP) Actual: 103.8 Previous: 102.5 https://www.dailyfx.com/economic-calendar#2021-09-27
  • Heads Up:🇰🇷 Consumer Confidence (SEP) due at 21:00 GMT (15min) Previous: 102.5 https://www.dailyfx.com/economic-calendar#2021-09-27
  • Fed's Powell: - Inflation is elevated, and will remain so before moderating - Bottleneck consequences are more persistent than expected
  • Fed's Powell: - The Fed would take action to prevent sustained increases in inflation - Higher prices and hiring troubles could be more enduring than anticipated
  • Powell: it's okay, I have a plan https://t.co/APbA1IbOQI
  • Despite Rosengren (Boston hawk) out on Sep 30 and now Kaplan (Dallas hawk) out on Oct 8, the Dollar has traded fairly steadily. Ditto for the US 10-Year yields.
  • The US is in focus over the coming days with Fed Chair Jerome Powell set to testify in front of the Senate Banking Committee, while September US PCE data and two gauges of US manufacturing activity are due. Get your market update from @CVecchioFX here:https://t.co/9RpmQxXXAw https://t.co/Uup86TPbJm
  • Fed's Kaplan to retire on October 8th - Dallas Fed statement
  • $GBPJPY bull flag focus on the 152.50 area https://t.co/beXYYUFl6c https://t.co/QorvmlSWQl
Yen May Rise as US, China Trade War Fears Sour Market Mood

Yen May Rise as US, China Trade War Fears Sour Market Mood

Ilya Spivak, Head Strategist, APAC

TALKING POINTS – TRADE WAR, CHINA, G7, YEN, BOJ

  • Commodity currencies down with Chinese stocks on trade war fears
  • BOJ holds policy unchanged, Yen might rise as risk aversion deepens
  • UofM measure of US consumer confidence expected to rise in June

Trade war jitters look set to reclaim the spotlight in the final hours of the week. The sentiment-linked Australian, Canadian and New Zealand Dollars fell alongside stocks in China as the US prepared to release a list of goods from the East Asian giant that will be subject to a new $50 billion round of tariffs.

Broader risk aversion is yet to take hold. Bellwether S&P 500 futures are treading water and the anti-risk Yen is trading flat, though the latter may reflect another firmly dovish policy announcement from the Bank of Japan as much as the absence of a concerted risk-off push.

A re-examination of last weekend’s contentious G7 leaders’ summit now that more immediately pressing scheduled event risk (Trump/Kim summit, FOMC, ECB) has passed might amplify concerns. Indeed escalating tensions between the world’s top economies seems hardly uplifting for investors’ mood.

BACKGROUND: A Brief History of Trade Wars, 1900-Present

On the data front, the University of Michigan measure of US consumer confidence is expected to tick higher after two months of moderation. This seems unlikely to mark a meaningful offset if risk-off capital flows gather legitimate momentum however.

In such a scenario, the Yen stands out as the most obvious beneficiary amid the unwinding of carry trades. The US Dollar may likewise rise as the dour mood burnishes its liquidity haven credentials. Commodity bloc currencies are likely to continue facing outsized selling pressure.

See our free guide to learn how to use economic news in your trading strategy!

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

EUROPEAN TRADING SESSION

Yen May Rise as US, China Trade War Fears Sour Market Mood

** All times listed in GMT. See the full economic calendar here.

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES