Forex Markets: The Dollar Slid Lower Against the Yen

Forex Markets - The Dollar Slid Lower Against the Yen - Wibest Broker (1)

In the Forex markets, the U.S. dollar tumbled down against the yen on Thursday. Simultaneously, the demand for safe-haven assets continues to build up amid the trade war. Also, investors are looking forward to the European Central Bank’s latest policy decision.

Aside from that, the dollar slips 0.2% against the yen at 108.21. It jumped back from its previous gains overnight.

Then on Wednesday in Washington, the Mexican officials talk with their U.S. counterparts to come up with an agreement. The meeting was about avoiding the U.S. tariffs on Mexican goods next week, but there was no hint of development.

Aside from that, President Donald Trump’s order could deepen Washington’s trade war with its partners. Last week, the president suddenly announced for Mexico to try harder in restricting illegal immigration or have an additional 5% tariffs on all its exports to the U.S.

Tokyo’s Barclay senior strategist Shinichiro Kadota stated, “The dollar had risen against the yen earlier on speculation that the U.S.-Mexico negotiations would produce positive results, but headed back down on headlines saying an agreement had not been reached.”

Moreover, the ECB will finalize its monetary policy on Thursday. And the central bank tries to help the weak eurozone to boost. Also, it might set the stage for more action this year as an intensifying global trade conflict unfolds the benefits of years of monetary stimulus.

Also, ECB President Mario Draghi will maintain guidance in any possible provocation that may happen.

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Meanwhile, the euro rose at 1.1226 after backing down 0.3% last Wednesday.

Then, the Mexican peso is under pressure with concerns over the trade conflict. It dropped to 19.7521 per dollar, walking back toward a five-month low of 19.8800 last Monday.

Furthermore, the dollar index slightly changed against a basket of six major currencies. It is trading at 97.243 after rising 0.25% the previous day.

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