What’s next? – USDJPY 06.06.18

The dollar was trading 0.25 percent higher vs the yen at 110.05 as of 10:05 GMT on Wednesday, despite the dollar was below the 94 mark.

The dollar remains under pressure as commercial tensions between the United States and key allies such as Mexico and Canada continue to weigh on sentiment.

On Tuesday, ABC News reported that US Treasury Secretary Steven Mnuchin has urged President Donald Trump to exempt Canada from import tariffs on steep steel and aluminum.

According to sources, Mnuchin introduced this idea to the President during a meeting of the administration’s senior economic policymakers, including director of the National Economic Council Larry Kudlow, Commerce Secretary Wilbur Ross, Trade advisor Peter Navarro, trade representative Robert Lighthizer and chief of staff John Kelly.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.14 percent at 93.74 by the time of this writing.

Ahead in today’s session, traders will keep an eye on the following releases: US Q1 nonfarm productivity, unit labor costs and the trade balance for Apr are all coming together at 12:30 GMT.

As we forecasted in the previous session, the pair has broken above the 110.00 level. Now traders will keep an eye on the dollar’s dynamic, which depends basically on politics.

A consolidation above the 110.00 mark will indicate an opportunity for bulls to extend gains up to 111.00 and 112.00 in the medium / long run.

FortFS