Trade War Escalation Sends Yen Higher

News that the ongoing US-Sino trade war is about to shift into high gear had given the Japanese Yen, as a safe haven currency, a lift. It was reported that the Chinese government has decided not to continue to discuss the trade issues with the US. The US has meted out more tariffs, including the sanctioning of a Chinese military agency, even as the second round of tariffs is due to be enacted later today.

As reported at 10:00 am (JST) in Tokyo, the USD/JPY was trading at 112.601 Yen, up 0.032%, moving off the section peak of 112.614 Yen; the session low is recorded at 112.285 Yen. The AUD/USD was trading at $0.7276, down 0.19%; the pair has ranged from $0.72500 to $0.72815. The NZD/USD is trading lower at $0.668, down 0.03%; the pair earlier hit a trough of $0.66560 while the peak is at $0.66885.

Brexit Talks at Impasse

In the UK, the Pound Sterling is now recovering after an earlier tumble on news that the UK government reportedly was at an impasse as regards the Brexit talks. Theresa May, the UK Prime Minister, confirmed that discussions with the EU negotiators stalled after they rejected her proposal. The Prime Minister is also being pressured by the opposition party who are considering a possible second referendum. The GBP/USD was trading at $1.3081, up 0.10%; the pair ranged from a low of $1.3061 to $1.3089.

 

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.