Yen Falls On Trade Optimism
January 17 2019 - 10:11PM
RTTF2
The Japanese yen declined against its major counterparts in the
Asian session on Friday, as investors cheered easing trade tensions
between the U.S. and China following a media report that Washington
is mulling lifting some or all tariffs imposed on Chinese imports
to resolve the dispute.
The Wall Street Journal reported that U.S. officials are
discussing the idea of raising tariffs on some or all of the $250
billion worth of Chinese goods to calm markets and provide Beijing
an incentive to agree to deeper concessions in a trade spat between
the economies.
Meanwhile, the Treasury Department said that the trade talks
with China were "nowhere near completion."
The U.S. and Chinese trade officials have time until March 1 to
reach a resolution, in order to prevent a sharp increase in US
tariffs on $200 billion in Chinese goods.
The yen edged down to 74.07 against the kiwi, 78.80 against the
aussie and 82.44 against the loonie, from its early highs of 73.68,
78.39 and 82.11, respectively. The yen is seen finding support
around 76.00 against the kiwi, 80.00 against the aussie and 84.5
against the loonie.
The yen weakened to more than a 2-week low of 109.44 against the
greenback, from a high of 109.06 hit at 6:25 pm ET. The next
possible support for the yen is likely seen around the 111.00
region.
The yen dropped to 124.67 against the euro and 110.11 against
the franc, off its previous highs of 124.23 and 109.71,
respectively. The yen is likely to challenge support around 126.00
against the euro and 112.00 against the franc.
Reversing from an early high of 141.57 against the pound, the
yen declined to 142.08. The yen is poised to find support around
the 144.00 area.
Looking ahead, Eurozone current account for November and U.K.
retail sales for December are due in the European session.
In the New York session, Canada consumer inflation for December,
U.S. industrial production for the same month and University of
Michigan's preliminary consumer sentiment for January are scheduled
for release.
Federal Reserve Bank of New York President John Williams will
deliver a speech about the economic outlook and monetary policy at
the New Jersey Bankers Association's Economic Leadership Forum.
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