- Safe-haven Japanese Yen is among the best performing G10 currencies in the last 24 hours on the back of renewed trade war tensions and tariffs on imported vehicles.
- The European Central Bank’s (ECB) Monetary Policy Meeting Accounts said that the “economic outlook is more uncertain” and “caution is needed”.
In Asia, EUR/JPY continued its slide of the last two days and established an intraday low at the 128.00 earlier in Europe. The pair then rebounded about 87 pips and is now consolidating in the 128.50 region in early American trade, down 0.15% on Wednesday.
The safe-haven Yen has been boosted on the back of geopolitical fears. In fact, in the last 24 hours, the Japanese Yen and the Swiss Franc have been the best performing G10 currencies on the back of rising concerns about international trade and worsening geopolitical tensions.
US President Donald has expressed unsatisfaction with the progress of the second round of talks between the US and China. Moreover, news of tariffs up to 25% on imported vehicles to the US further strengthened the yen demand. “There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!” tweeted Trump.
Additionally, it is still not quite clear if the meeting between Trump and the North Korean leader Kim Jong Un will actually take place on June 12 in Singapore.
Meanwhile, the complex political situation in Italy still worries investors as the main Italian stock index MIB FTSE is trading at a 6-week low.
On the macroeconomic side of the story, the European Central Bank (ECB) released its Monetary Policy Meeting Accounts (minutes) earlier in Europe. Although the ECB said that it is “confident that inflation would rise towards the target in medium-term” it also expressed concerns over protectionism (trade war) which raises “raises uncertainty over the economic outlook” and can ”trigger disorderly FX moves (volatility).” As a result, the “economic outlook is more uncertain” and “caution is needed”. However, the minutes also pointed out that “growth risks are broadly balanced and growth is still solid, broad-based.”
Earlier in the day, the German Gross Domestic Product matched analysts expectations at 2.3 % for the first quarter of 2018 annualized while the GfK Consumer Confidence came slightly below expectations.
EUR/JPY 4-hour chart
The pair is trading below its 50, 100 and 200-period simple moving averages (SMA) on the 4-hour chart suggesting a strong downward bias. Supports are seen at the 128.50, 128.00 and 127.50 figures while resistances are priced in at 129.08 and 129.83 swing high.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.