FX Action: The yen has traded softer
FX Action: The yen has traded softer so far today. USD-JPY has lifted to a three-session high of 106.86, and EUR-JPY and other yen crosses have similarly lifted. Good yen selling was seen at the Tokyo fix (today is a "gotobi" day, date multiple of 5, which is netted out Japanese importers' demand for foreign currencies), and the currency subsequently maintained a modest downside ebb. Asian stock markets have been mixed, with Japan's Nikkei closing 0.6% for the worse, but Chinese indexes and U.S. equity futures managing gains. On the trade war front Chinese premier, Li, pledged that it will lower import tariffs and better protect intellectual property rights, and also noted that the WTO has already ruled against tariffs directed at itself. Japan's trade minister said that there was a "high possibility" that Japan would be exempted from the U.S. tariffs on steel and aluminium. Bloomberg reported a Japanese MoF official complaining that recent yen movements have been too volatile and trading too strongly. Japanese data today included the March Tankan business survey, which fell 1.0% m/m for large manufacturers while rising 2.0% for services.