Japanese Yen Strong on Risk Aversion

The Japanese yen was relatively strong today due to risk aversion caused by the US-China trade war. Surprisingly poor domestic macroeconomic data had limited impact on the currency.

Japan’s trade balance turned from a surplus of Â¥0.45 trillion in April to a deficit of Â¥0.3 trillion in May. That was a total surprise to analysts, who were counting on an excess of Â¥0.14 trillion.

Markets were nervous at the start of the week amid fears of trade wars as the United States announced new tariffs on Chinese imports, and China responded in a similar manner, putting new levies on US goods.

USD/JPY fell from 110.64 to 110.43 as of 12:37 GMT today. EUR/JPY was down from 128.19 to 127.81 intraday but managed to rebound to 128.30 by now.

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