Yen Tumbles as Risk Appetite Overcomes Trump’s Remarks
On Thursday, the Japanese yen tumbled in Asia FX market. It was when the safe-haven demand dwindled after U.S. President Donald Trump indicated de-escalation in tension with Iran.
Meanwhile, the U.S. Dollar Index that tracks the greenback counter to a basket of other currencies last traded at 96.985, under 0.01%.
Earlier this week, the Islamic Republic unleashed several rockets counter to U.S. airbases in Iraq.
The release was in response to a U.S. bombing that has assassinated a top Iranian general last week.
In reply to the attacks from Iran, Trump stated that the U.S. “will immediately impose additional punishing economic sanctions on the Iranian regime.”
Meanwhile, the sanctions would persist in force until Iran shifts its behavior, Trump added.
The decision from the president to select for sanctions rather than military response dispatched safe-haven assets down.
On the flip side, stocks and other risk assets retrieved.
In the forex trading, the USD/JPY pair strengthen by 0.1% to 109.26. The GBP/USD pair also increased by 0.2% to 1.3119.
Prime Minister Boris Johnson directed European Commission Chief Ursula von der Leyen that the U.K will not broaden its transition out of the European Union beyond December 2020.
It is for the reason that it is provoking fears that the U.K. may possibly still exit the EU without a deal at the end of the year.
A Contract Would Be A Risk
However, Leyen cautioned that “without an extension of the transition period beyond 2020,” a contract on a new trade agreement would be a threat.
Moreover, the AUD/USD pair and the NZD/USD pair both edged up 0.1% in the foreign exchange market.
The USD/CNY pair on the other side plunged 0.3% to 6.9247.
China’s National Bureau of Statistics described that the country’s consumer price index climbed 4.5% last month from a year earlier.
The median projection was for a 4.7% increase.
Elsewhere, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has been able to prevent notable losses. It is due to a lack of New Zealand Dollar (NZD) intensity.
Since the opening this week, at the level of 1.9615, GBP/NZD has been trending with a steadily upside preference.
Investors are cautious about buying the New Zealand Dollar.
Meanwhile, the GBP/NZD has been incompetent to hold Tuesday’s half-month-highs of 1.9830.
Moreover, the pair still trends above average near the level of 1.9748 at the time of writing on Thursday.
The Pound outlook lingers gloomy on the forthcoming Brexit uncertainties.
The New Zealand Dollar outlook, on the other hand, has stabilized slightly as last weekend’s military worries may not escalate further.
