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USDJPY Down on Trump’s Pessimistic Tweets on China Trade

US President Donald Trump just sent a tweet indicating that China was showing no signs of taking on US agricultural imports.

“China is doing very badly, worst year in 27 – was supposed to start buying our agricultural product now – no signs that they are doing so,” Trump tweeted. He continued:

“That is the problem with China, they just don’t come through. Our economy has become much larger than the Chinese economy in the last 3 years.”

These comments are coming as US-China trade talks continue un Shanghai, China. Pessimism among traders on these comments has brought on some USDJPY selling. The pair had retested the resistance posed by the 38.2% Fibonacci retracement levels drawn from the April 2019 swing high to the June 2019 swing low. The USDJPY is now trading at 108.48.

USDJPY May React on More US Data

As we wind down gradually to the D-day on interest rates from the United States, USDJPY traders will also have their eyes on several key data such as the CB Consumer Confidence data, the ADP Employment Change on Wednesday, the Fed announcement and finally the Non-farm Payrolls report on Friday.

Market consensus seems to be for a 25bps rate cut by the US Fed, but with Donald Trump wanting a lot more to happen, you never can tell: there could be a surprise for the markets.Don’t miss a beat! Follow us on Twitter.

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