ForexLive Asia FX news wrap: USD/JPY little changed after swing higher retraced

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Monday 3 August 2020

USD/JPY strengthened 50 points to above 106.40 in morning Asia trade, the move higher occurring over the course of only about 30 minutes before slowly retracing the whole move over the following hours. There were a number of factors involved including:

  • follow through buying from Friday's huge move up lows under 104.20 with a round of stops finally taken out above 106.10
  • news of a M&A move out of Japan, Seven Eleven's parent company to buy out a US convenience store/gas station operation

Other currencies, too, followed through on Friday moves with a higher USD against EUR, AUD, NZD, GBP and again, a subsequent unwind of the Asia morning move to leave them all not a lot changed on the session (with some variance by currency of course).

Further US-China tensions were evident in weekend remarks from US Sec State Pompeo who said in a TV interview that action would be taken against Chinese companies, not just TikTok. News came out during the session here that TikTok parent ByteDance has been given 45 days to negotiate a deal to sell the app to, at this stage at least, Microsoft.

Coronavirus news centred on harsher lockdown restrictions announced in UK citiy of Manchester and Australian city of Melbourne. There will be further restrictions announced for Melbourne in the next couple of hours.

Late Friday in the US Fitch affirmed the US rating but downgraded the outlook for the country from stable to negative.

usd yen wrap 03 August 2020

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