Given the recent equity market sell-off due to discussion of Aluminum & Steel import tariffs proposed by the White House, the USD/JPY has been one of the biggest movers.
Due to the risk off attitude by investors world wide, the USD/JPY rate has broken the 105 level and appears to be heading to 104.
At this point, the sell-off in the dollar may be over done as interest rate differentials will lead to a spot appreciation in the USD. With 3-4 rate hikes set to occur this year in the US coupled with Japan waiting until 2019 to unwind quantitative easing, the USD seems poised to reverse.
For further multi-asset insights and trade ideas feel free to check out our site on our signature or home page!
Due to the risk off attitude by investors world wide, the USD/JPY rate has broken the 105 level and appears to be heading to 104.
At this point, the sell-off in the dollar may be over done as interest rate differentials will lead to a spot appreciation in the USD. With 3-4 rate hikes set to occur this year in the US coupled with Japan waiting until 2019 to unwind quantitative easing, the USD seems poised to reverse.
For further multi-asset insights and trade ideas feel free to check out our site on our signature or home page!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.