Dollar/yen and yen crosses show buying interest for now, but will there be a rapprochement between the US and China? [From Mr. Rikio Shima's newsletter]
From Shima Rikio’s investment newsletter “Shima Rikio’s Practical Real-Time Trading” provided by GogoJungle, here is a small portion from today’s issue.
The USD/JPY and yen crosses jumped sharply. This is evidence that many are trading with margin, among other things. Like during the flash crash, those who have pushed to their limits get forced to close positions, but once liquidity returns, shorts disappear, so it might unexpectedly fall. I said I would close positions around the half-price level, but I’ll cancel that. I’ll wait a bit. Because I don’t think anything essential will be decided in two weeks.
President Trump probably wants China to buy agricultural products like soybeans. You can tell from the tweets he always makes. He wants to solidify the support of Trump supporters in the Midwestern swing states. However, from China’s side, they would like to have Huawei able to do business as a barer. But that is not a condition that Mr. Lighthizer or the Washington power centers can accept.
However, from China’s side, they would like Huawei to be able to do business as a barer. But that is not a condition that Mr. Lighthizer or the Washington power centers can accept.
This is something that the U.S. side and Trump are requesting. It is a story brought up by the U.S. (Trump) who wants to strike a deal. If that is the case, China will test the U.S. footing and push for higher demands. If that happens, it seems nothing will be decided after all.
“Shima Rikio’s Practical Real-Time Trading” (Shima Rikio)quote.
The partial postponement of the fourth round of tariffs against China has led to a market where buying is favored. On the other hand, can the United States and China present a solution by December? (Editorial staff)
