Safe Haven Yen Glided as US-China Trade Tensions Persist

Safe Haven Yen Glided as US-China Trade Tensions Persist

On Monday, the safe-haven Japanese yen glided lower versus the other major currencies. This was after risk appetite progressed after two days of trade talks.

Officials described the negotiations as “productive”.

The dollar inched higher against the yen, rising from 0.1% to 107.72. Meanwhile, the euro also increased its ground. It is in comparison to the Japanese currency, escalating 0.1% to 118.66.

In Japan, markets were closing for the holiday. The winding up has resulted for the trade volumes to continue weakly.

On Friday, a U.S.-China trade breakthrough has appeared to be doubtful. In a news report, President Donald Trump indicated that he was “not looking” for a partial deal.

Moreover, Chinese officials all of a sudden canceled goodwill visits to U.S. farmers.

The U.S. Trade Representative’s office issued a brief statement indicating the two days of negotiations with China as “productive.”

The releasing of the announcement happened over the weekend. The next high-level trade talks will take place in October, following their schedule.

Prospects of the Inclusive Agreement 

Meanwhile, China’s Commerce Ministry termed the negotiations as “constructive” in a brief statement.

The ministry also said that they had a good conversation on “detailed arrangements” for the talks in October.

In addition, the U.S. eliminated tariffs from more than 400 Chinese products. This is in response to the appeal from U.S. companies.

Markets still remain skeptical regarding the possibility of a deal soon, despite the better tone.

The dollar was mostly flat around 98.18 against a basket of currencies.

However, it has shifted a little versus the euro at 1.1008.

U.S. Dollar-Yen exchange rate weakened on the headlines, with the yen sliding 0.15% versus the U.S. dollar to 107.71.

On Friday, the British pound was slowing down from 0.14% to 1.2457. This happened after collapsing from a two-month high.

In the meantime, Brexit deal prospects were diminishing.

Moreover, British Prime Minister Boris Johnson was sending warnings against the possibility of a breakthrough on Monday.

Meanwhile, if the U.S. and China trade tension may be resolved, there’s still a chance for more negotiations.