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.

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
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • China A50 Index, which exhibited little correlation with the US stock market in the past, rose more than 1% to 15,900. An immediate resistance level can be found at 16,000 (chart below). https://t.co/Zxsh0wUpV7
  • Wall Street Futures Update: Dow Jones (+1.125%) S&P 500 (+1.103%) Nasdaq 100 (+1.087%) [delayed] -BBG
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/7mYrLT7zcL
  • 🇯🇵 Consumer Confidence (OCT) Actual: 33.6 Previous: 32.7 https://www.dailyfx.com/economic-calendar#2020-10-29
  • Heads Up:🇯🇵 Consumer Confidence (OCT) due at 05:00 GMT (15min) Previous: 32.7 https://www.dailyfx.com/economic-calendar#2020-10-29
  • Fear has reared its ugly head this past session. Will a fire burn when for risk assets like the Dow even as attention is drawn forward to next week's Presidential election? I discuss my views in today's trading video: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/29/Dow-and-Nasdaq-Enter-Technical-Corrections-Dollar-Plays-Safe-Haven-Ahead-of-GDP-and-FAANGs.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KYexqG2pEa
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.86%, while traders in NZD/USD are at opposite extremes with 69.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yOLbxwOKhF
  • The Indian #Rupee may weaken following a breakout higher in $USDINR over the past 24 hours. Despite rising global stock market volatility, the #nifty50 has been holding its ground. Could it capitulate lower? - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/29/Indian-Rupee-Nifty-50-Forecast-USDINR-Breakout-as-Volatility-Spikes.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/GPQSQMvUsn
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.28% 🇨🇦CAD: 0.24% 🇬🇧GBP: 0.16% 🇨🇭CHF: 0.10% 🇪🇺EUR: 0.07% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/YuqROnNqY7
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.95% Wall Street: 0.95% France 40: 0.56% Germany 30: 0.46% FTSE 100: 0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/kACR087bkv
Yen May Rise if China Takes Hard Line on US Tariff Hike Threat

Yen May Rise if China Takes Hard Line on US Tariff Hike Threat

2019-05-08 08:00:00
Ilya Spivak, Head Strategist, APAC
Share:

TALKING POINTS – YEN, TRADE WAR, CHINA, US DOLLAR, TARIFFS, TRUMP

  • Yen up as APAC stocks follow Wall St. lower, NZD down on RBNZ cut
  • US-China trade talks eyed as Beijing bristles at Trump tariff hike threat
  • S&P 500 completes bearish chart pattern, signaling risk-off bias ahead

The New Zealand Dollar underperformed in Asia Pacific trading hours after the RBNZ announced a cut of the benchmark interest rate to 1.50 percent. The US Dollar corrected lower as markets digested the prior session’s gains, scored courtesy of haven demand amid a broad-based selloff. The similarly anti-risk Japanese Yen continued higher however as APAC stocks followed Wall Street lower.

Looking ahead,German industrial production figures headline an otherwise muted data European docket. Forecasts envision a 0.5 percent decline in March. Leading PMI data has already telegraphed acute weakness over period in question however, as well as the month to follow. Absent an especially dramatic deviation from baseline projections, this probably undercuts this release’s market-moving potential.

YEN MAY RISE AS CHINA TAKES HARD LINE ON US TARIFF HIKE THREAT

Rather, the spotlight is likely to turn to the coming arrival of a Chinese delegation led by Vice Premier Liu He in Washington, DC for another round of trade talks. The clock is ticking as negotiators scramble to make progress after US President Donald Trump committed to raising tariffs on $200 billion in Chinese imports form 10 to 25 percent this Friday, triggering a market rout.

Rhetoric seeping out from official circles in Beijing suggests policymakers there are not keen to appear timid or deferential as the White House dials up the pressure. That might make for a tense outing between Mr Liu and his US counterparts. Another risk-off sweep is likely if this cools bets on a near-term deal ending immediate hostilities. JPY and USD seem positioned for gains in such a scenario.

What are we trading? See the DailyFX team’s top trade ideas for 2019 and find out!

CHART OF THE DAY – S&P 500 COMPLETES BEARISH SETUP, SIGNALS TREND CHANGE

S&P 500 chart completes bearish setup, signals trend change

S&P 500 chart positioning is signaling trend change. Prices recoiled from a dense resistance cluster below the 3000 figure, as expected. The subsequent break below the floor of a bearish Rising Wedge chart pattern appears to confirm the formation of a double top, setting the stage for deeper losses ahead.

The bellwetherstock index often serves as a proxy for market-wide sentiment trends. To that end, this reversal might portend a broader risk-off pivot across global financial markets. That bodes well for defensive plays like JPY and USD. Cycle-sensitive commodity dollars (AUD, NZD) might face outsized pressure.

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