USD/JPY Downtrend Remains; Potential Pennant in GBP/USD

Talking Points:

– A potential scandal surrounding Japanese Finance Minister Taro Aso has traders rethinking Abenomics’ ‘weak JPY’ point of view.

– Signs that a transition deal with emerge between the EU and the UK has given new life to the British Pound.

Sentiment for the US Dollar remains mixed at the start of the week.

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The US Dollar (via DXY Index) has given up earlier gains as traders continued to digest the ramifications of US President Trump’s tariff announcement late last week. With Canada, Mexico, and now Australia exempted from the aluminum and steel tariffs, it’s increasingly looking like the plan is more ‘bark’ than ‘bite.’ That said, a number of other countries and economic regions, like China and the Eurozone, haven’t been granted exemptions and the prospect of a global trade war remains.

Accordingly, with negative trade headlines out of the United States cooling off a bit, and in consideration of the exceptionally light economic calendar on Monday, traders’ attention has turned to domestic developments out of

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