Yen Strengthens Amid U.S.-China Uncertainty
(Bloomberg) -- The yen was quoted stronger in early Asia-Pacific trading hours Monday, while the offshore Chinese yuan slipped against the U.S. dollar amid ongoing uncertainty over the U.S.-China trade relationship.
- USD/JPY was quoted as much as 0.2% lower at 109.69
- USD/CNH was quoted as much as 0.2% higher at 6.8583
- The New Zealand and Australian dollars both weakened against the greenback
- NOTE: High-level trade talks between Chinese and American officials broke up Friday without a deal and U.S. President Donald Trump on Saturday said it would be wise for China to “act now” to finish a trade deal with the U.S., warning of “far worse” terms after what he predicted would be his certain re-election in 2020. White House’s top economic adviser, Larry Kudlow, predicted that the impact on U.S. jobs and growth from higher tariffs assessed on Chinese goods would be “de minimis,” while conceding that “both sides” will suffer from the trade war.
- Link to related story: Markets Watch for China Blowback as Trump Turns Up Heat on Trade
- EUR/USD was little changed
- European Central Bank Governing Council member Francois Villeroy de Galhau, in an interview with the FT, said that the euro zone is “making process” in meeting the ECB’s inflation target
- GBP/USD strengthened as much as 0.2%
- NOTE: Pressure is building on British Prime Minister Theresa May ahead of talks with the opposition Labour Party aimed at reaching a deal on leaving the European Union, as opinion polls showed support for Nigel Farage’s Brexit Party soaring and members of her own side urged her to change strategy
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