Japanese Yen Weakens as Safe Haven Appeal Diminishes

An improvement in market sentiment over positive developments in the US-China trade war is causing the Japanese yen to weaken against the US dollar on Wednesday. At the time of writing. USD/JPY is trading at around 107.82.

The safe haven appeal for the Japanese yen has been diminished over news reports that China is considering increasing imports of US agricultural products as a goodwill gesture before the next round of trade talks scheduled for October. Earlier today, China’s Ministry of Finance also announced an exemption of tariff hikes on 16 different products imported from the US.

The US dollar has been trading relatively steady as traders are hesitant to make significant movements before the important ECB meeting due tomorrow. There is a high likelihood of the central bank announcing a rate cut and rolling out additional stimulus measures to stop the Eurozone economy from weakening further.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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.
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