The Japanese yen was largely flat against most of its major peers on Monday. While market participants were somewhat nervous after US President Donald Trump said that the United States are not ready for a trade deal with China, the US dollar was the beneficiary of the resulting risk aversion, not the yen.
Trump was visiting Japan on Monday, hoping to reach a trade deal that will reduce the US trade deficit with the Asian country. The US President sounded optimistic, saying:
They are brilliant business people, brilliant negotiators and have put us in a tough spot but I think we will have a deal with Japan.
Meanwhile, Japan passed a legislation effective August 1 that will limit foreign ownership of high-tech industries. While no country was singled out as a target of the new rules, analysts speculated that the law was made to limit IP theft by China.
Now, traders wait for Japan’s inflation data due to release on Tuesday. The Bank of Japan will release its CPI print at 5:00 GMT.
USD/JPY edged up from 109.32 to 109.50 as of 21:32 GMT today. EUR/JPY was flat at 122.56. CHF/JPY was also little changed at 109.08.
If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.
