USDJPY Holds Its Ground as US, China Trade Spat Dominates Markets
USDJPY talking points:
- The trade battle between the US and China continues to dominate global markets.
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Little demand for haven assets
There’s been no strong demand for haven assets as European traders arrive at their desks for the new week despite the continuing row between China and the US over trade and geopolitical concerns centring on the latest developments in Syria.
USDJPY, a bellwether for traders’ willingness to buy riskier assets, moved ahead modestly Monday, remaining in the upward trend that began in late March. While an escalation of tensions would likely send USDJPY lower, there has been little sign of that happening so far this session.
USDJPY Price Chart, Daily Timeframe (December 8, 2017 – April 9, 2018)
Chart by IG
Similarly, there’s been no strong demand for gold, which is also seen as a haven asset but continues to trade sideways, attracting little demand.
Gold Price Chart, Daily Timeframe (December 8, 2017 – April 9, 2018)
Looking ahead, traders are waiting for a keynote speech by Chinese President Xi Jinping at the Boao Forum Tuesday. Meanwhile, there has been little response so far to the latest news from Syria. The attack on an airbase and a suspected chemical attack on Saturday have both ratcheted up Middle East tensions but the markets have so far shrugged off these latest developments.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.