The US Dollar continues to try to hold on to earlier gains versus the Japanese Yen, as the pressure continues to weigh after a ballistic missile was fired by North Korea just as the US-Sino Summit looms. The US President us due to meet with the Chinese President, Xi Jinping, to discuss security, economic and trade issues. Also keeping pressure on the greenback are growing doubts that Trump can implement promised policies to boost economic growth, especially after last week’s healthcare reform debacle. Analysts say that investors are taking a wait-and-see stance to determine whether or not the President can fulfill his campaign promises on infrastructure.
As reported at 10:02 am (BST) in London, the USD/JPY was trading at 110.88 Yen, a gain of 0.16%; the pair earlier hit a session low of 110. 55 Yen, while the peak was set at 110.97 Yen for the session. Last Friday, the USD/JPY hit a 10-day high at 112.19 Yen.
Data Driver of Dollar
The US Dollar could recover with the release of more data which would support the Federal Reserve’s intention to raise interest rates further over the course of this year. On Tuesday, it was reported that the trade deficit fell unexpectedly to $-43.6 billion against expectations of a fall to $-44.8 billion. Traders are waiting for today’s release of FOMC minutes as well as ADP payroll figures for March; it is expected that that number should fall to 187,000 new jobs from 298,000 in February. The ADP report is often used as guidance for Friday’s government jobs report, the non-farms payroll report.