USD/JPY Trading Close to Six-Month Highs Over Rising Expectations for US-China Trade Deal
Arslan Butt • 1 min read
Early on Thursday, the US dollar continues to make gains against the Japanese yen over the improvement in the market sentiment over rising expectations for the US-China phase one deal. At the time of writing, USD/JPY is trading at around 109.35.
USD/JPY is trading close to six-month highs over diminished safe haven appeal as the risk-on sentiment returns to global markets over optimism that the US and China could soon begin to resolve the 17-month long trade war by signing the partial trade deal. The first phase of the trade agreement could see the US suspend some tariffs and reduce some others on Chinese imports in exchange for China committing to increase farm goods imports from the US.
Amid lack of volatility and thin trading volumes during the holiday season, markets continue to enjoy support from this positive development in the US-China trade war. The decision to finalize the interim trade deal was announced just in time before the US was due to implement an additional round of tariff hikes on Chinese imports, mostly consumer goods.