It seems that traders’ and investors’ trust in USD is starting to reborn again. After so many months of us being unsure whether USD was going to remain a safe haven or whether it was going to lose all privileges seem to finally come to an end as American side of trade war came to its senses and is now thinking over lifting some of the tariffs imposed onto China. And that can’t help but give us the sense of hope for the future of trading. But well, growing trust in greenback means that a certain class of assets is going to lose some of the investors pretty rapidly. And that is very clear and obvious right now.
Look at one of the most popular safe havens — JPY. USD/JPY chart is soaring today on the possible development in American-Chinese trade war. This uprising has been ongoing ever since the trade talks started, so since the beginning of September, it is just that we have been so preoccupied with Brexit, that JPY was far away from the span of our attention. But now we can finally come back to safe havens. And the picture is flattering for us as traders — growing chart is our favorite scene after all. Too for JPY, though — risk hunger is growing, JPY is not needed anymore.
Will USD keep on the growth today? Oh, I think yes if we are going to keep hearing more news about tariffs being lifted from China.
Plus, it is not scary when you have trading signals by your side.