- The Japanese Yen (JPY) is rising after steep losses last week
- Oil prices steady after Trump’s comments hinting at an end
- The US Dollar (USD) falls against major peers
- Trump said the US was far ahead of its initial 4-5 week plan
The US dollar Japanese yen (USD/JPY) exchange rate is falling after strong gains last week. The pair rose 1,11% in the previous week, settling on Friday at 157.80. On Monday at 21:00 UTC, USD/JPY trades -0.06% at 157.70 and trades in a range of 157.63 to 158.90.
The Japanese yen is rising on hopes that the conflict in the Middle East will end soon, after surging oil prices had weighed on the yen last week. Even though the yen is often considered a safe-haven currency. However, given that Japan imports much of its energy requirements, this makes the country very vulnerable to rises in energy prices. Last week oil rallied 35%, marking one of its largest weekly rallies in history.
Looking ahead, attention will be on Japanese GDP data, which is expected to show quarter-on-quarter growth of 0.3% in Q4 up from 0.1% in Q3.
The U.S. dollar is falling across the board. The US dollar index, which measures the USD against a basket of currencies, is falling -0.27% on Monday to 98.72 after rising 1.4% last week.
The US dollar is falling sharply amid hopes of de-escalation. The USD is tracking yields lower after U.S. President Trump told CBS in an interview that the war against Iran is very complete, easing concerns over a prolonged conflict that could disrupt global energy supplies and weigh on economic growth over time.
Trump suggested that the US is far ahead of the initial four-to-five-week estimated timeline for the war.
Trump’s comments boosted stocks and oil prices, which had soared to a four-year high of almost $120.00 a barrel, as fears over disrupted energy supplies calmed.
The market will continue watching developments closely, given that the outlook remains clouded.
