USD/JPY clings to small gains above 109 as focus shifts to Trump speech
|- US Dollar Index extends consolidation above 98.
- US Pres. Trump is expected to deliver remarks on trade conflict with China.
- Wall Street looks to open the day modestly higher.
The USD/JPY pair is moving sideways above the 109 handle for the second straight day as investors stay on the sidelines while waiting for United States (US) President Donald Trump to deliver fresh remarks on the trade dispute with China. As of writing, the pair was up 0.15% on a daily basis at 109.20.
Focus shifts to US President Trump's speech
Ahead of President Trump's speech at a luncheon hosted by the Economic Club of New York, Politico reported that a source familiar with Trump's prepared remarks said that his statement on China will be constructive. If that turns out to be true, risk-on flows could re-take control of the market and make it difficult for the safe-haven JPY to find demand. In the meantime, major European equity indexes are posting modest gains on Tuesday and the S&P 500 Futures is up 0.1% to reflect a slightly upbeat market mood.
On the other hand, the US Dollar Index is moving sideways above the 98 mark in the absence of significant macroeconomic drivers, suggesting that the risk sentiment is likely to continue to impact the pair's movements.
Later in the session, Richmond Fed President Thomas Barkin and Philly Fed President Patrick Harker will be speaking as well. In the early trading hours of the Asian session, Producer Price Index (PPI) figures from Japan will be published but are likely to be ignored by investors.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.