USD/JPY rises on expectations of easing U.S.-China trade tensions, but slows after weak U.S. CPI release.

【6/11Market Overview

In Tokyo time, the USD/JPY rose to 145.16 yen on reports that the U.S.-China talks would proceed under the framework of the Geneva agreement being implemented. However, when reports said that the U.S. federal appellate court granted a temporary extension of the injunction against Trump’s tariffs, it reversed to145.16144.66 yen. Afterwards, with the Nikkei stock average remaining firm and U.S. 10-year Treasury yields rising, the USD/JPY climbed to144.66145.25 yen. In European trading, President Trump posted on his ownSNSthat “if Xi Jinping and I give final approval, the agreement with China is complete” and that “China will accelerate the supply of rare earths,” sending yen selling and dollar buying, with the USD/JPY briefly reaching145.47yen. In New York time, as5month U.S.CPI (Consumer Price Index) and the core index excluding energy and food came in below expectations from the prior month, dollar selling and yen buying intensified, and the USD/JPY fell to144.32yen.

【6/12Market View