If Draghi’s optimism on economy outlook is fading, sell USD/JPY?
US Treasuries moved higher after Trump instructs Commerce Secretary Ross to consider starting an investigation into auto imports, which may lead to fresh tariffs.
- Last week, US two-year yields hit an almost-decade high, but Wednesday’s FOMC minutes confirmed there is a very high bar for accelerated rate hikes. However, fresh geopolitical events drove the yield lower after the FOMC meeting.
- Market had already been risk-off amid concern of a US-North Korea summit will be delayed.
- Chinese Foreign Minister Wang Yi told US Secretary of State Mike Pompeo in Washington that China hopes that the summit is held on time to prevent positive changes in Korean Peninsula from being stopped, according to a Xinhua report.
- North Korea renewed threat to cancel planned Trump summit
- USD/JPY may test 109.30 later if US stocks sell-off in NY session
Fullerton Markets Research Team
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