DXY Index Gains Build Further; USD/JPY Nears Yearly High

Talking Points:

– A lack of details in China’s official response to the latest round of US tariffs suggests that the ‘tit-for-tat’ nature of the US-China trade war may be giving way to a more concilliatory attitude.

– Speculation that China won’t escalate the trade war further has risk appetite improving once again, with USD/JPY rallying to its highest level since January 9 – even as neither US Treasury yields nor US stocks make significant advances.

Sentiment for the US Dollar continues to suggest a neutral outlook after recent price developments.

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The US Dollar (via the DXY Index) is rallying for the fourth consecutive day – its rallied every day this week thus far – as the ebb and flow of the China-US trade war has seemingly swung in a more positive direction. Risk appetite has been bolstered somewhat, with US equity futures pointing higher; although, the US Dollar has outperformed either US Treasury yields or US stocks thus far today.

After the US Trump administration announced plans for tariffs

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/top_fx_headlines/2018/07/12/DXY-Index-Gains-Build-Further-USDJPY-Nears-Yearly-High.html