USD/JPY had reached its highest level since Dec 2017 this morning...
As overnight weakness in Yuan helped extend the dollar's gains from yesterday.
However, following China’s commerce ministry response to the U.S. position on steel - saying the US. measures violate WTO rules and urging Washington to stop restrictive measures - USD/JPY tumbled...
Specifically, the Chinese commerce ministry says in a statement on website that China’s countermeasures against U.S. steel, aluminum duties are necessary to safeguard its interest and multilateral trade system, arguing that the U.S. measures seriously violate WTO rules and hurt interests of China and other members.
China also noted that Washington didn’t respond to the Chinese consultation request, according to WTO rules, and the ministry calls on U.S. to stop restrictive measures that violate WTO rules.
So who is to blame for the drop in USD/JPY (and thus stocks)? Simple - Blame China (who are blaming Washington for blaming China)...
Comments
Log in or sign up to join the conversation.