Dollar/yen extends its gains; are Trump tariffs already priced in?

【2/11Market Overview

In Tokyo time, with the Tokyo market closed,151yen level in the upper- to mid- range with little movement. President Trump signed an executive order imposing 25% tariffs on steel and aluminum with no exemptions or waivers, but the market had already priced it in, so reaction was limited. In European session, USD/JPY briefly fell to151.64yen but held firm. In NY session, as the yield on 10-year Treasuries rose, USD/JPY climbed to152.61yen. Furthermore, Powell, the chair of the FRB, stated in this day’s remarks before the U.S. Senate Banking Committee that there is no need to rush policy stance adjustment and that the U.S. economy is broadly solid, saying essentially the same as after the January FOMC meeting.1JanuaryFOMCpress conference.

【2/12Market View