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 notwithstanding bullish data
On Thursday, the dollar slumped in Asia notwithstanding bullish GDP data because the anti-risk yen was pushed up by the soaring geopolitical tensions. Due to the fact Japan appears to be a net creditor country, the Japanese yen is often picked up as a safe-haven asset in times of uncertainty.
Tracking the American currency versus a pack of sic major counterparts, the US dollar index was last seen at 89.66, sinking 0.11%, trying the 90 level and reviving from a one-month minimum of 88.59 reached on Tuesday.
In the fourth quarter the American GDP rallied at a 2.9% annual rate, surpassing the anticipated outcome of 2.5%.
This week North Korea’s diplomatic moves were closely watched. Donald Trump wrote on Twitter that North Korea’s leader Kim Jong-un considered meeting with him. In May, the US-North Korea is expected to take place.
The currency pair USD/JPY dived 0.21% coming up with a result of 106.62. This pair managed to overleap the 106 mark the first time this week having reached a fresh minimum of 104.60 on Tuesday.
Besides this, Japanese media informed that Kim Jong-un’s seeking negotiations with Japan. Most probably the meetings might take place right after the summit with America.
Market participants are also waiting the Tokyo basic CPI data as well as February’s industrial output data to be released on Friday.
China has confirmed that on Wednesday Kim visited this Asian country and met with its leader Xi Jinping. Kim told that he relished a thought of giving up nuclear weapons.
Additionally, the currency pair AUD/USD hit 0.7657, ending up with 0.07%. It headed south to 0.7645 on Thursday in Asia, which is the lowest value since December 18.
Next week a rate decision will be announced by the Reserve Bank of Australia.
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