A pair like CNH/JPY better characterizes the mood in currency markets, says Chris Turner, an Ing currency analyst.
The pessimism about the internal demand of the US is growing
“Asian commercial nations are being hit hard with tariffs, since the block comprises about 60% of the annual deficit of US goods. Short -term fixation above 7.20 would trigger another fall in Asian currencies because of the fear that Chinese authorities could tolerate a weaker renminbi after all. “
“But far from Asia, the dollar is being sold in front of the great liquid defensive currencies of the Japanese Yen and the Swiss Franco and, to a lesser extent, the euro. Here, the impact of US tariff USA on tax cuts or deregulation that the dollar begins to find some support.
“And again, this is different from 2017/18, where an important tax cut was approved before tariffs were announced. With pessimism growing on the internal demand of the USA., Investors are expected to continue using short positions in USD/JPY to express this opinion. 147.00 is a fair Return to the 145 zone. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
