What’s next? – USDJPY 22.05.18

The dollar was trading 0.08 percent higher vs the Japanese yen at 110.95 as of 06:00 GMT on Tuesday, with market players taking a moderate position ahead of data due later this week.

In late trading hours on Monday, the American currency started to turn downwards, possibly due to lack of data support, but remained under pressure amid easing trade war concerns.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.05 percent at 93.54 by the time of this writing.

Positive news on the US-China trade relations front had boosted the dollar position earlier on Monday, pushing it against its major competitors.

Over the weekend, US Treasury Secretary Steven Mnuchin said in an interview over the weekend that the trade war was “on hold”.

No relevant economic data is scheduled in Asia.

Ahead in the day, attention will be mainly directed to speeched by the Bank of England, including Governor Mark Carney as of 08:15 GMT. Inflation Report Hearings in the UK are due to start at 09:00 GMT. Also, CBI Industrial Trends Orders for May are up one hour later.

The pair’s dynamic is currently tied to the dollar almost exclusively. For such reason, it is reasonable to think that there wouldn’t be much volatility in the hours to come, especially as a batch of high-impact economic data is expected for the second part of the week.

FortFS