Fundamental Comment

USDJPY rises as Trump softens stance against China

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The U.S. dollar soared against the Japanese Yen on Monday despite negative pressure on the dollar after the latest weak US jobs data, as well as trade the tensions between the U.S. and China.

The US jobs report released on Friday showed a decline in the number of new jobs created during the month of March to 103,000 jobs from 326,000 jobs in February and stabilization in the unemployment rate at 4.1%.

The weak jobs data pushed the greenback lower against the yen and other major currencies on Friday, but today the greenback managed to rebound against the yen amid improvement in the sentiment after the US President Trump softened his stance against China over the weekend.

“President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries,” Trump tweeted in the weekend.

His tweet has raised hopes that the two giant countries would settle the trade dispute before the new tariffs come into effect.

European shares traded higher, while investors dampened safe havens such as yen and gold.

The USDJPY pair is currently trading at 107.11 after opening the day at 107.94 and recorded the highest at 107.15.

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