Japanese Yen Declines as Demand for Safe Haven Decreases

Market Reviews

Japanese yen is the weakest one. The British pound is trading as the second weakest. Canadian dollar is the third weakest. New Zealand dollar and Australian dollar are the strongest ones. Euro is also firm. The US dollar is trading near a two-month low.

The global stocks are trading broadly higher. DOW jumped 0.95% to record high at 26656.98 overnight. S&P also made new record at 2930.75, up 0.78%. On asian markets, Nikkei gained 1.13% and is now very close to 2018 high at 24129.34, Hong Kong HSI increased by 1.20%, China Shanghai SSE rose by 1.71% and Singapore Strait Times grew by 1.30%.

Today’s data showed, that Japan all item CPI rose 0.5% mom 1.3% yoy in August. Core CPI (ex-fresh food) rose 0.3% mom, 0.9% yoy. Core-core CPI (ex-fresh food and energy) rose 0.2% mom, 0.4% yoy. While core CPI ticked up from 0.8% yoy in July, it’s still way off BoJ’s target of 2%. Japan PMI manufacturing rose to 52.9 in September, up from 52.5, but missed expectation of 53.1.

Japan and the United States will hold the second round of trade talks on September 24 in New York. The meeting between Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer will be held after August, when both sides could not reduce the disagreement over whether to open negotiations on a bilateral free trade agreement (FTA).

The next meeting of European Union leaders in October will be the “moment of truth” for negotiations over Britain’s exit from the bloc, the chair of EU summits said on Thursday. European Council President Donald Tusk said after meeting between EU leaders yesterday that “everybody shared the view that while there are positive elements in the Chequers proposal, the suggested framework for economic cooperation will not work, not least because it risks undermining the single market.”