Yen Down as US, China Trade Deal Hopes Buoy Market Mood

TALKING POINTS – YEN, AUSSIE DOLLAR, CHINA, TRADE WAR, EURO, ITALY, POUND

  • Yen down, Aussie and NZ Dollars up on US/China trade deal hopes
  • Euro bounce may stall on budget clash between Italy, EU authorities
  • British Pound still looks vulnerable as Brexit negotiators scramble

The Euro and the British Pound corrected higher following yesterday’s politically-driven bloodletting while the US Dollar retraced some of its explosive gains. Meanwhile, the sentiment-linked Australian and New Zealand Dollars rose while the anti-risk Japanese Yen traded broadly lower. That seems to be linked to hopes for de-escalation of the trade war between the US and China.

US, CHINA TRADE DEAL HOPES CLASH WITH EUROPEAN POLITICAL WOES

From here, a relatively quiet European economic data docket may be overshadowed by regional political developments yet again. A brewing budget clash between Italy and the EU stands out and may put the single currency back on the defensive as both sides dig in their heels.

Stalled Brexit negotiations are another possible flashpoint. Officials are scrambling to come up

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2018/11/13/Yen-Down-as-US-China-Trade-Deal-Hopes-Buoy-Market-Mood.html