FX Update: The yen went from outperformer to underperformer
FX Update: The yen went from outperformer to underperformer after China's commerce ministry affirmed that September trade talks are not off the table. There was a palpable sigh of relief in markets after the Trump administration yesterday made official its extra 5% tariff on $300 B in Chinese goods imports. U.S. Treasury Secretary Mnuchin had already said he was expecting Chinese negotiators to visit Washington. AUD-JPY has been the biggest mover, and was showing a 0.3% gain heading into the New York interbank open after showing a decline of nearly 0.5% at the intraday lows. USD-JPY rallied by nearly 50 pips in posting a three-day peak at 106.35 before settling. Elsewhere, EUR-USD posted a six-day low at 1.1070, making today the fourth consecutive day of losses. The latest dip has been driven by a broader bid, albeit moderate, for dollars. Sterling has settled after plunging yesterday on news of the UK prime minister's move to suspend Parliament. This has generated a veritable political storm given the timing of it, though the government is operating within the rules. Opposition parties now look certain to attempt to bring down the government by a confidence vote as soon as next week. Cable has settled near 1.2200 after yesterday printing a six-day low at 1.2155. USD-CAD tipped about 30 pip lower to levels around 1.3280, correcting from a six-day high at 1.3319.