- The USD/JPY goes back about 145.00 while the US dollar corrects before commercial conversations between the US and China.
- The president of the USA, Trump, announced that China tariffs could be reduced to 80%.
- Total household spending in Japan increased at a strong rate of 2.1% year -on -year in March.
The USD/JPY pair goes back to about 145.00 during negotiation hours in North America on Friday, after failing to extend its rise above almost a month of maximum of 146.20 earlier in the day. The torque corrects while the US dollar (USD) goes back, with investors becoming cautious before commercial conversations between the United States (USA) and China on Saturday.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, yields its initial profits and falls to about 100.30.
Investors will pay special attention to commercial conversations between the US and China, since the ongoing tariff war has led market experts to reduce US and global economic prospects.
Before the meeting between the US and China, President Donald Trump has indicated that pekin tariffs could be reduced to 80% through a publication in Truth.social. “The 80% tariff on China seems correct! It depends on Scott Besent,” Trump said.
In the last two negotiation sessions, the US dollar was negotiated firmly since the Federal Reserve (FED) indicated that there is no hurry for trimming of interest rates in the announcement of monetary policy on Wednesday and the declaration of the commercial agreement between the US and the United Kingdom (UK), the first of the White House since the publication of reciprocal tariffs.
Meanwhile, the Japanese Yen (JPY) exceeds his peers on Friday, since uncertainty before commercial conversations between the US and China has increased its demand as a safe refuge.
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.57% | -0.52% | -0.71% | -0.01% | -0.47% | -0.23% | -0.59% | |
| EUR | 0.57% | 0.03% | -0.18% | 0.55% | 0.10% | 0.33% | -0.04% | |
| GBP | 0.52% | -0.03% | -0.21% | 0.52% | 0.06% | 0.29% | -0.04% | |
| JPY | 0.71% | 0.18% | 0.21% | 0.72% | 0.26% | 0.48% | 0.16% | |
| CAD | 0.00% | -0.55% | -0.52% | -0.72% | -0.47% | -0.22% | -0.56% | |
| Aud | 0.47% | -0.10% | -0.06% | -0.26% | 0.47% | 0.23% | -0.10% | |
| NZD | 0.23% | -0.33% | -0.29% | -0.48% | 0.22% | -0.23% | -0.33% | |
| CHF | 0.59% | 0.04% | 0.04% | -0.16% | 0.56% | 0.10% | 0.33% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
At the national level, total household spending data in Japan for March have been better than projected. The total expenditure of households, a key measure of consumer spending, increased at a strong rate of 2.1% year -on -year compared to 0.2% estimates. In February, consumer spending measure decreased 0.5%.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
