USD/JPY fluctuates wildly due to uncertainty over peace talks.
【4/21Market Overview
Tokyo time, the dollar/yen pair slipped to158.71yen in early trade, but then drifted higher to158.92yen. In the Tokyo session the evening column noted, “Awaiting decisions in June on possible rate hikes and assessing Middle East developments,” and the dollar/yen rose to159.25yen. In European hours, with the U.S.-Iran ceasefire deadline looming, crude futures rose, and the market saw “safe haven buying of the dollar” ahead of the dollar/yen moving up to159.61yen. In NY time, when Vice President Pence canceled his visit to Pakistan and Iran announced it would skip day 22 talks, the dollar/yen rose to22yen? (Note: text originally says 22 days; interpreted as “the 22nd day discussions”)159.64yen. Afterwards, President Trump stated he would not set a deadline and would extend the ceasefire with Iran “until discussions end,” triggering a rollback in the safe-haven dollar rally, and the dollar/yen retraced to159.29yen.
【4/22Market View