Japanese Yen Continues to Make Gains, Despite Improvement in Trade Tensions

Despite a slight improvement in market sentiment surrounding the US-China trade war, the Japanese yen continues to make gains on Tuesday

Arslan Butt•Tuesday, August 27, 2019•1 min read

Despite a slight improvement in market sentiment surrounding the US-China trade war, the Japanese yen continues to make gains on Tuesday. At the time of writing, USD/JPY is trading at 105.68, as investors remain concerned that the trade dispute remains far from resolved.

Even after somewhat optimistic remarks from Trump that both US and China trade teams are looking to restart negotiations once again, US Treasury yields declined, hiking the demand for the safe haven currency JPY. Even though the US dollar is trading steady, the Japanese yen continues to remain in demand over the high uncertainty in markets currently.

There was another yield curve inversion in US bond yields on Monday, a sign that signals an impending recession. With the trade war on in full swing, traders and investors are worried about whether the US economy will head towards a recession, as signaled by this inversion.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.