Agreement on the U.S.-U.K. trade pact and expectations for U.S.-China trade talks push USD/JPY to the mid-146s at one point.

【5/8Market Overview

In Tokyo time, President Trump of the United States said that he would hold a big press conference at “5May 8on the10time (Japan time2300) and that an announcement would be made about a major trade agreement with countries that are highly regarded," which led to dollar buying, but when some reports stated that “President Trump will announce a trade deal with the UK on8May,” the pound/dollar rose, pushing the dollar/yen down to143.44yen; later, supported by gains in the Nikkei and higher US 10-year Treasury yields after hours, rose past the previous high of144.00yen to144.35yen. In European time, with an initial expectation of progress in negotiations over US tariffs, the USD/JPY briefly crossed145yen.During NYtime, both the US and UK governments announced that they had reached an agreement to sign a trade deal. With expectations for progress in the US-China negotiations looming over the weekend, the Dow Jones Industrial Average surged, and risk-on selling of yen and buying of the dollar led to the USD/JPY reaching as high as146.17yen.May,” the pound/dollar rose, pushing the dollar/yen down to8143.44yen; later, supported by gains in the Nikkei and higher US 10-year Treasury yields after hours, rose past the previous high of144.00yen to144.35yen. In European time, with an initial expectation of progress in negotiations over US tariffs, the USD/JPY briefly crossed145yen.During NYtime, both the US and UK governments announced that they had reached an agreement to sign a trade deal. With expectations for progress in the US-China negotiations looming over the weekend, the Dow Jones Industrial Average surged, and risk-on selling of yen and buying of the dollar led to the USD/JPY reaching as high as146.17yen.

【5/9Market View