The yen rose on Tuesday as some investors tempered optimism about the prospect of an early end to the US-China trade war, and traders continued to avoid risky assets.
The yen rose on Tuesday as some investors tempered optimism about the prospect of an early end to the US-China trade war, and traders continued to avoid risky assets.
The yen on Tuesday morning rose by about 0.41% to 105.68 per dollar, and also by about 0.65% against the Australian and New Zealand dollars.
The dollar index against a basket of major currencies fell by 0.04% to 97.983.
The yield on 10-year US Treasury bonds fell to 1.5232% in trading in Asia. The yield curve was inverted, as the yield on 2-year bonds was 1.5267%, which is usually considered a sign of an impending economic downturn.
US President Donald Trump said on Monday that China had contacted US officials and said he wanted to return to the negotiating table.
However, markets doubt progress, as a spokesman for the Chinese Foreign Ministry said he had not heard of the phone call.
The People’s Bank of China lowered its official average yuan rate on the mainland market to 7.0810 per dollar, a new 11.5-year low, but still at a higher value than traders expected. On Monday, the yuan fell by 0.7%.
On the offshore market, the Chinese currency began trading at 7.1445 per dollar, and by this morning it was at 7.1736.
The euro against the US dollar is trading at $ 1.1101.
The British pound is trading at $ 1.2216, after falling by 0.5% on Monday, when investors reassessed whether British Prime Minister Boris Johnson made any progress in negotiations with the European Union to revise the Brexit agreement.
Meanwhile, oil prices rose on Tuesday after U.S. President Donald Trump predicted a deal with China would come after Beijing’s positive comments, easing concerns after a round of rebound tariff increases, which led to a downturn in the markets.
Brent futures were up by 0.41% and are trading at $ 58.94 per barrel. Futures for US light oil WTI rose by 0.45% to $ 53.88 per barrel.
USDCHF: Buy. Entry point – 0, 9782. Take profit – 0, 9806. Stop Loss – 0, 9741.
GBPCHF: Buy. Entry point – 1, 1987. Take profit – 1, 2024. Stop Loss – 1, 1923.
USDJPY: Sell. Entry point – 105, 72. Take Profit – 105, 37. Stop Loss – 106, 32.
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