A moderate risk-off theme has become re-established in global markets, which pushed Treasury and other top-tier sovereign yields lower and hit stock markets while buoying the Yen in forex markets. USDJPY ebbed moderately lower as the Japanese currency picked up a safe-haven bid, breaking free of what had been a narrow orbit of the 109.50 level. A two-week low was set at 109.20. EURJPY and other Yen crosses also softened.
A South China Morning Post¹ article shone a light on the depth of US-China trade tensions, citing unnamed Chinese officials blaming the Trump administration for the recent breakdown in negotiations, claiming that the US “kept adding new demands in the late stages of the negotiations,” asking for changes that would in some cases “directly affect China’s political and social stability.”
Sentiment Keeps Supporting the JPY bid.
A South China Morning Post¹ article shone a light on the depth of US-China trade tensions, citing unnamed Chinese officials blaming the Trump administration for the recent breakdown in negotiations, claiming that the US “kept adding new demands in the late stages of the negotiations,” asking for changes that would in some cases “directly affect China’s political and social stability.”
Sentiment Keeps Supporting the JPY bid.