01.06.2020 Usd/Jpy Daily Analysis

01.06.2020 Usd/Jpy Daily Analysis

Usd/Jpy is trading at 107.54; it is trading lower with 0.23 mainly because the dollar has sold off in early European trade Monday, as fewer investors seek this safe haven amid rising optimism about the global economic recovery and as U.S. President Trump offers up a measured response to China’s move to tighten control over Hong Kong. Commonwealth Bank of Australia FX analyst Joe Capurso told CNBC that “Market participants believe that the worst of the health and financial and economic crises are now behind us. That’s supportive for commodity prices...and if we’re past the worst of it, then commodity currencies tend to do well and the U.S. dollar tends to do poorly in the early stages of a recovery,” Commonwealth Bank of Australia FX analyst Joe Capurso told CNBC.  Meanwhile, U.S. President Donald Trump did not move to end phase one of its trade deal with China when he laid out his response to China’s national security law for Hong Kong and Macau on Friday.  Investors breathed a sigh of relief that the response has not yet spilled over into a broader trade dispute. According to Chris Weston, head of research at Melbourne brokerage Pepperstone told CNBC “It’s tough to be a bear at the moment and the path of least resistance for risk remains to the upside in my opinion. We’ve moved past Trump’s China speech without the market hearing anything that will upset China too greatly and promote an immediate reaction.”