FX Update: The yen took a rotation lower
FX Update: The yen took a rotation lower during pre-Europe trading in Asia as stock markets steadied after wobbling yesterday. A report in Politico saying that EU officials are expecting President Trump to confirm that he will delay hiking tariffs on EU cars and auto part imports for another six months, according to an EU source, gave investor spirits a boost after the president had said over the weekend that the media had exaggerated U.S. willingness to roll back tariffs on China. Trump is scheduled to speak on trade before the Economic Club of New York today, where markets will be on tenterhooks, looking for confirmation of the EU tariff story and a positive update on the China trade front. This backdrop saw Japan's Nikkei 225 finish up by 0.8%, which is its biggest gain in a week, while the MSCI Asia-Pacific (ex-Japan) index rose 0.5%, after dropping 1.2% yesterday. The yen concomitantly saw the safe-haven positioning of yesterday unwind. USD-JPY lifted from sub-109.0 levels and above yesterday's high in making a peak at 109.29. This swings the five-month high seen last week at 109.48 back into scope. Yen crosses also traded firmer as the Japanese currency weakened. Narrow ranges have been prevailing among the other main dollar pairings and associated cross rates. EUR-USD has been plying a narrow range below 1.1050 and above the one-month low seen last Friday at 1.1016. Cable has drifted moderate lower, correcting some of the gains seen yesterday following news that the Brexit Party won't be challenging existing Conservative Party seats at the December-12 general election, which has boosted the odds of PM Johnson being returned to Parliament with a working majority. AUD-USD hit a two-week low at 0.6832 before rebounding above 0.6850. . U.S. growth has slipped to a growth pace of 1.9% from 3.1% at the start of the year.