July 11, 2018 18:09: Why the USD/JPY is firm? [From Mr. YEN Kura's newsletter]
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The United States has disclosed a new list of 200 billion dollars worth of Chinese goods subject to tariffs, causing the yen to strengthen and stocks to fall. The Nikkei Stock Average temporarily dropped more than 400 points (it ultimately closed 264 points lower). So what about the exchange rate? YEN-zou views it as follows.
It has risen to around 111.20 after European trading hours. Unlike yesterday, even as USD/JPY rises, the upside for the cross-yen pairs is capped. In particular, the rebound in the Oceania currencies is weak, perhaps reflecting the impact of the U.S.-China issue.
Quotation from YEN-zou's Real-Time Newsletter "Real Top Trading" (Gaku Tashiro).
It seems to be priced into the market, yet the U.S.-China issue also sways news. It will be necessary to keep a close eye on how both countries respond in the future. (Editorial staff)
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