The Japanese yen rose today, heading for its largest monthly rise since May.
Concerns over the economic decline from the ongoing US-China dispute in addition to a looming ‘no-deal Brexit’, which is looking likely, resulted in less ‘risky’ trade decisions for investors.
According to Commerzbank FX strategist, there is very little optimism surrounding the trade war negotiations and investors remain concerned.
As of yesterday, President Trump raised its extra 5% on $300 billion in Chinese imports, with collection dates of September 1st and December 15th.
The yen increased by 0.2% against the dollar, sitting at 05.83 yen. As it stands, it’s looking to hit its biggest monthly rise in three months and estimated to gain 2.5% against USD.
The inverted US Treasury yield curve was also popular with investors as they watched out for any signs pointing to a future recession.
Elsewhere, markets were rattled after the Queen approved UK Prime Minister Boris Johnson’s plan to suspend parliament, driving sharp losses in the pound. GBP plummeted as much as 0.8% yesterday and more weakness in the cable is expected as political turmoil and uncertainty continue to rise.
Meanwhile, China’s yuan managed to avoid hitting an 11th straight fall against USD, which would have been its record losing-run. As of 4:45pm in Shanghai, the yuan fell as much as 0.09% before it strengthened 0.21% to 7.1495 a dollar.
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