empty
10.05.2019 01:05 AM
The yen will rise while the world is facing a trade war

This image is no longer relevant

The yen is rapidly going up in the escalation of the trade conflict between the United States and China. The currency has already updated a 3-month high against the dollar, as investors choose a safe haven, fearing that the friction between the two largest economies in the world may escalate. Two days of trade negotiations will begin in Washington on Thursday, and traders are concerned about whether the Chinese and American negotiators will be able to save the deal in order to prevent further tariff increases.

In general, fluctuations in foreign exchange markets, despite the new attack in the trade war, were rather muffled, but the yen's jump, which is in demand during times of political instability, suggests that investors are beginning to lose their nerves. The main "victims" of rising tensions were the Australian and US dollars, as well as the offshore Chinese yuan. At the same time, the prospects are bleak. The parties are unlikely to agree on a trade deal for these two days and, most likely, the United States will impose tariffs on Friday. It is worth noting that, unlike previous episodes of escalation, when the dollar benefited, the current threat to raise tariffs on Chinese imports prompted market strategists to focus on the devastating impact on Washington.

This image is no longer relevant

Prospects for the conflict's escalation led to a rise in the yen, which will continue in the coming days. The currency gained 0.3 percent against the dollar, to 109,640 yen, rising by more than 1 percent this month. According to the latest data from the Commodity Futures Trading Commission, traders have further increased net long dollar rates, including against the yen. D. Trump said that China "broke the deal" reached at the talks and vowed to introduce new tariffs if Beijing "does not stop deceiving US representatives".

Irina Maksimova,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

US Market News Digest for July 31

US stock indices closed the previous day mixed. The S&P 500 and the Dow Jones both posted minor declines. Meanwhile, the Nasdaq 100 saw modest gains. Futures are currently rising

Ekaterina Kiseleva 12:31 2025-07-31 UTC+2

Fed signals and tariff threats keep markets on edge in July

MSCI dipped by 0.28% to 933.15, weighed down by a strong dollar and Fed statements. Powell said it is too early to talk about a rate cut in September

12:07 2025-07-31 UTC+2

Nervous July: Markets fluctuate amid Fed signals and US tariffs

MSCI -0.28% to 933.15 — pressure from a strong dollar and Fed statements. Powell: too early to talk about a rate cut in September. Dow Jones -0.38%, S&P 500 -0.12%

Thomas Frank 11:06 2025-07-31 UTC+2

Panic grips markets: Dow and Nasdaq slide on weak forecasts, Fed in focus

UnitedHealth lowers annual profit guidance. Whirlpool plunges. UPS weighs on Dow Transports. Asian shares climb ahead of Fed policy decision. Indices fall: Dow down 0.46%, S&P 500 down 0.30%, Nasdaq

13:16 2025-07-30 UTC+2

US Market News Digest for July 30

US stock indices ended the day in the red due to weak earnings reports from major companies and anticipation surrounding the Fed's upcoming decision. Shares of UnitedHealth fell by 7.5%

Ekaterina Kiseleva 13:00 2025-07-30 UTC+2

Markets reel as UnitedHealth, Whirlpool's weak outlook drags indexes lower ahead of Fed decision

UnitedHealth forecasts full-year profit below expectations Whirlpool falls after Q2 profit miss, full-year profit forecast cut UPS weighs on Dow Transports Asian stocks rise ahead of Fed policy announcement Indices

Thomas Frank 08:28 2025-07-30 UTC+2

US Market News Digest for July 29

US stock indices showed mixed dynamics: the S&P 500 and Nasdaq posted modest gains, while the Dow Jones declined. Investor attention is focused on the upcoming Federal Reserve decision

Ekaterina Kiseleva 11:30 2025-07-29 UTC+2

Nike rallies, Dow Jones slips, tariffs weigh — key forces shaping markets today

The US and EU have averted a trade war. Nike shares have climbed. US and Chinese officials have resumed trade talks. Tariffs are acting as a drag on both

11:19 2025-07-29 UTC+2

Nike soars, Dow Jones falls, tariffs weigh — what's happening in global markets right now?

US, EU avert trade war with 15% tariff deal Nike shares rise after JP Morgan upgrade China, US officials resume trade talks Analysts warn tariffs are holding back

Thomas Frank 11:05 2025-07-29 UTC+2

US Market News Digest for July 28

US equity indices closed higher, with the S&P 500 and Nasdaq 100 setting new all-time highs following a fresh trade agreement between the United States and the European Union, which

Ekaterina Kiseleva 12:34 2025-07-28 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.