On Monday, the Japanese yen strengthened due to increased investor appetite for safe-haven assets, as Washington and Beijing introduced additional export tariffs for each other, reinforcing the gloomy tones hanging over global economic prospects.
On Monday, the Japanese yen strengthened due to increased investor appetite for safe-haven assets, as Washington and Beijing introduced additional export tariffs for each other, reinforcing the gloomy tones hanging over global economic prospects.
On Sunday, the United States began collecting 15 percent duties on various Chinese goods, including shoes, smart watches and flat-screen TVs, while China introduced new crude oil duties for the United States.
US President Donald Trump said the two sides will still meet for talks later this month, but hopes for a resolution of the trade war have diminished.
This week there will be a lot of important economic releases from the US and China, which will help to more accurately determine who is most affected by the ongoing trade war.
Gold, which, like the yen, tends to find favor with investors at uncertain times, also rose on Monday to a maximum of a week. The decline in Asian stocks also showed that investors are avoiding risk.
Risk sentiment may also be affected by ongoing protests in Hong Kong over Chinese rule in the city.
Foreign exchange trading can be quite sluggish today, as US financial markets are closed due to the celebration of Labor Day.
The US dollar index fell against a basket of six major currencies by 0.01% to 98.809.
The yen rose by about 0.1% against the dollar - to a mark of 106.15 in Asian morning trading.
The Japanese currency grew by about 0.2% to 71.42 against the Australian dollar and by 0.2% to 66.95 against the New Zealand currency.
Spot gold rose by 0.39% to $ 1,525.25 per ounce.
The mood for yuan improved after a private survey on Chinese production surpassed market expectations in August and Chinese stocks rose more than 1% on Monday.
Production capacities in China unexpectedly expanded in August, as the Caixin / Markit Purchasing Managers Index (PMI) increased on Monday, but orders remained weak, which could only indicate a temporary improvement.
Continental yuan is trading at 7.1603 per dollar, slightly weaker than its previous value at Friday's close. In the offshore market, the yuan initially fell against the dollar, but managed to reduce its losses, now trading at around 7.1686 per dollar.
The euro is trading at 1.0992, up 0.01% in Asian trading, but the mood for the single currency remains quite negative.
GBPUSD: Buy. Entry point – 1, 2152. Take profit – 1, 2174. Stop Loss – 1, 2115.
USDCAD: Sell. Entry point – 1, 3320. Take profit – 1, 3301. Stop Loss – 1, 3352.
NZDUSD: Buy. Entry point – 0, 6304. Take Profit – 0, 6321. Stop Loss – 0, 6275.
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