Yen Near Flat; U.S.-Japan Trade Talks Hit Last-Minute Snag By

© Reuters. – The Japanese yen was little changed against the U.S. dollar on Tuesday in Asia. Developments on the U.S.-Japan trade front were in focus after reports suggested that the negotiations might have hit a last-minute snag.

Citing people familiar with the talks, Reuters reported that the two nations are still hoping to sign a trade deal this week.

However, the deal might be “limited” and is not expected to include changes to tariffs governing autos, the biggest source of the $67.6 billion U.S. trade deficit with Japan, Reuters said.

On the data front, Japan’s Jibun Bank Flash Manufacturing Purchasing Managers’ Index slipped to a seasonally adjusted 48.9 from a final 49.3 in the previous month, marking the quickest pace of deterioration since February.

The pair was little changed at 107.53 by 11:45 PM ET (03:45 GMT).

The pair was also near flat at 1.0988. Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months.

The pair was also largely unchanged. The People’s Bank of China said on Tuesday that Beijing has many monetary policy tools and large policy room to support its economy.

The central bank said in a statement that the country’s financial risks are generally under control and that the current interest rate levels are appropriate.

Incoming European Central Bank President Christine Lagarde said the Sino-U.S. trade war is weighing like a “big, dark cloud” on global economy.

“The longer this lingers, the more uncertainty sinks in. And if you’re an investor, if you’re an enterprise, whether small, medium size or big, you’re not going to invest, you’re going to wait. You’re going to sit and wonder where the supply chains are going to be organized,” Lagarde said in an interview CNBC.

Concerns that the tension between China and the U.S. might have escalated once again intensified over the weekend after the U.S. requested China to cancel a planned visit to U.S. farming regions over the weekend.

U.S. Treasury Secretary Steven Mnuchin later explained that the timing of the trip “wasn’t necessarily the perfect timing” but China have commited to buy more farm products and that “they’re doing that.”

The pair and the pair both gained 0.1%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *