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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.19% 🇯🇵JPY: -0.41% 🇪🇺EUR: -0.42% 🇳🇿NZD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/768NGH3tot
  • #Gold just hit a fresh multi-month low as the precious metal dropped to trade around the $1,680 level. The metal broke through support alongside the rise in yields in February, falling from around $1,800 to its current lows. $XAU $GLD https://t.co/oJvQqE5gfR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 3.35% France 40: 2.17% FTSE 100: 1.38% Wall Street: 1.31% US 500: 0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fLfJGdE5Hl
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/QO6zl1auQk
  • Really great article - apposite on International Women's Day but also a great read on the other 364 days of the year. @DailyFX h/t Weld Royal and Izaac Brook https://www.dailyfx.com/forex/fundamental/article/special_report/2021/03/08/Three-Women-Leaders-Changing-Finance-Economics-and-Business.html
  • $USDCHF has risen to fresh seven month highs today as the pair continues to trade above the 0.9300 level, at its highest levels since July of 2020. $USD $CHF https://t.co/spI5eIP3NM
  • Germany 30 IG Client Sentiment: Our data shows traders are now at their least net-long Germany 30 since Jan 09 when Germany 30 traded near 14,102.20. A contrarian view of crowd sentiment points to Germany 30 strength. https://www.dailyfx.com/sentiment https://t.co/kBUVfEOnTp
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.07% Gold: -0.74% Oil - US Crude: -1.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wUkbYkPr1x
  • 🇺🇸 Wholesale Inventories MoM (JAN) Actual: 1.3% Expected: 1.3% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-03-08
  • 🇺🇸 Wholesale Inventories MoM (JAN) Actual: 1.3% Expected: 1.3% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2021-03-08
US-China Trade Talks Risk Breaking Down, USD/JPY Currency Options Signal Fears

US-China Trade Talks Risk Breaking Down, USD/JPY Currency Options Signal Fears

Justin McQueen, Analyst

US-China Trade War Analysis & News

  • Hong Kong Bill to Weigh on US-China Trade Talks
  • Option Markets Highlighting Concerns Over Possible Breakdown in Trade Talks

Hong Kong Bill to Weigh on US-China Trade Talks

Overnight, the House of Representatives passed the Hong Kong Human Rights and Democracy Act by 417-1 with the bill now going to President Trump to either sign into law or veto. The bill would entail an annual review of the special treatment that Hong Kong receives under US law and would require the US to impose sanctions on Chinese and Hong Kong officials who are deemed responsible for human rights violations. Consequently, equity markets dropped overnight with safe-haven assets benefitting, given that this looks increasingly likely that this will weigh on US-China trade talks, raising the risk of a potential breakdown in trade talks yet again. Alongside this, Reuters reported that the US-China phase one agreement could be pushed into next year and thus prolonging the economic uncertainty.

Option Markets Highlighting Concerns Over Possible Breakdown in Trade Talks

In light of the US passing the Hong Kong bill, option markets have been showing increased demand for Japanese Yen calls over puts, prompting risk reversals on both the 1-week and 1-month to fall to 4-week lows. In turn, this highlights that USD/JPY may be set for a larger pullback on the back of a deteriorating risk environment amid the potential failure in US-China trade talks. In the short term however, with vanilla option expiries littered around 108.00-108.75, volatility in the currency may be somewhat constrained.

Option expiries

USD/JPY: 108.00 (850mln), 108.15-20 (722mln), 108.25-35 (1.7bln), 108.40-50 (2.7bln), 108.65-75 (1.3bln)

US-China Trade Talks Risk Breaking Down, USD/JPY Currency Options Signal Fears

USDJPY Price Chart: Daily Time Frame (Mar 2019 – Nov 2019)

US-China Trade Talks Risk Breaking Down, USD/JPY Currency Options Signal Fears

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES