US FX Handover Yen Tops Again As HighStakes Trade Talks Kick Off

Trump tweets that China’s Vice Premier Liu He is coming to the US “to make a deal,” boosting hopes of a potential trade deal this week (and by extension, risk assets). That said, traders are cautious after a Reuters report that China backtracked on all of its previous trade commitments. See why the outcome of this week’s trade talks may be a binary event for pairs like AUD/JPY and USD/CNH.
The Japanese yen was the strongest major currency for the second consecutive day, with USD/JPY peeking below 110.00 before stabilizing just above that level through today’s US session.
The pound (ongoing Brexit uncertainty) and kiwi (RBNZ rate cut) were the weakest major currencies on the day.
Gold closed roughly flat on the day but could be a big beneficiary if US-China trade talks fail to reach an agreement.
Chinese inflation figures for April (CPI and PPI) will be the major economic data to watch in today’s Asian session trade.

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