Market sentiment continued to suffer as the US threatens Mexico with tariffs, even as the trade war with China continues without any resolution in sight. While most other assets including the US dollar suffer, the risk-off sentiment has helped boost demand for safe havens like the Japanese yen and GOLD.
On Thursday, USD/JPY continued to trade bearish as the Japanese yen strengthened. At the time of writing, this forex pair is trading at around 108.24 as fears about global trade tensions continue to weigh on the markets.
Mexican officials have been meeting with their counterparts in the US in a bid to prevent these new tariff hikes. However, the talks have failed to make any progress so far as the US continues to maintain a hard stand against illegal immigration.
The US government alleges that Mexico has not done enough to strengthen its borders and prevent illegal migrants from Central America enter the US in search of asylum.