The Japanese yen tumbled yesterday on reports suggesting that the US and China have quietly started negotiations to find common ground. The euro was amongst yesterday’s main winners, getting a boost from ECB Governing Council member Jens Weidmann.
Trade Fears Ease on US-China Talks Reports
The dollar traded lower against all but one of the other G10 currencies on Monday. The greenback was up only against the yen. The main gainers were NOK, EUR and SEK, in that order.
Following last week’s trade tensions between China and the US, Sunday reports suggested that the two nations have started negotiations behind the scenes in order to find a common ground. According to the reports, the US has requested reduction of Chinese tariffs on US autos, more Chinese spending of US semiconductors and greater access to China’s financial sector by US companies. US Treasury Secretary Steven Mnuchin said that he is “cautiously hopeful” that the two economies will reach an agreement to avoid tariffs, while on Monday, China’s Premier Li noted that the two nations should continue talks and reiterated pledges to ease access for US businesses.
Read the full financial markets daily report on JFD Research.