Yen surges broadly in Asian session while Canadian, Australian and New Zealand Dollars are the weakest one. This is the typical development with risk aversion. DOW closed down -0.72% or 178.88 pts to 24834.41 overnight. S&P 500 lost -0.31% to 2724.44. NASDAQ dropped -0.21% to 7378.46. In Asian Nikkei is trading down -1.13% at the time of writing. HK HSI is down -1.0%.
Market seemed to respond negatively to Trump’s comment that he’s “not satisfied” with the trade talks with China. And called the negotiations just a “start”. That’s rather inconsistent with Treasury Secretary Steven Mnuchin’s comment that the meeting made “very meaningful progress”. Also, it remains unclear when the planned Kim-Trump summit will happen on June 12 in Singapore. Trump just said that “whether or not it happens, you’ll be knowing pretty soon” .
But as European Council President Donald Tusk described before, the American administration has capricious assertiveness. So unpredictably is somewhat predictable.
Technically, GBP/JPY is a pair to note as 148.16 minor support is broken, which suggests completion of corrective rebound from 147.04 at 149.99. UK CPI will be a focus today and another miss would push the cross through 147.04 towards 144.97 low.
