How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Greenback goes down versus yen in the face of American political turmoil
On Friday, the evergreen buck went down in Asia in the face of the fresh round of staff cycling in the White House, right after on Thursday Trump dared to have H.R. McMaster sacked as his national security adviser. The Japanese yen tacked on versus the major US currency on ascending risk aversion notwithstanding everlasting political scandal in Japan.
Estimating the value of the US currency against a pack of six leading rivals, the US dollar index lost 0.06% being worth 90.09.
This week’s wild and rapid developments in the White House have sent mighty shockwaves to the financial market and market participants are looking for further cues of what Trump might decide to do next. Traders had seen Trump sacking his Secretary of State Rex Tillerson this week as well as his assistant Steve Goldstein, not to mention McMaster.
The Trump administration will most likely be populated by quite hawkish statesmen soon, who get along with Trump's protectionism. It definitely rekindles the market's strong concern of a global trade clash driven by the tariff plans backed by the White House.
The evergreen buck headed south 0.33% versus the Japanese yen. The currency pair USD/JPY hit 105.99, overleaping the 106 level. Amidst the looming instability in the American political arena, market participants shifted to the anti-risk Japanese yen instead of the US currency, giving extra support to the Japanese yen in Asia.
This week Japan faced political turmoil. Shinzo Abe, the country’s prime minister was reportedly aware of the fake documents before they were uncovered by the media. The minister’s spouse was accused of providing a shocking discount in land sale to the purchase.
The currency pair AUD/USD pair dived 0.10% being worth 0.7790 because the greenback was gradually reviving.
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