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Risk aversion from Friday's imposition...>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Risk aversion from Friday's imposition of increased tariffs on
Chinese goods into the US had pressed USD/JPY to Y109.48 on Friday but was able
to recover just above Y110.00 ahead of the close on calming comments from US
Trump concerning relationship with China. However, risk aversion was apparent
into Monday trade with USD/JPY pressed back to the Y109.60 area as markets
positioned for Chinese trade retaliation. Announced tariffs had minimal initial
impact before strong risk aversion USD/JPY sales emerged in early NY to drop
rate down to Y109.02. Market had been well positioned for this reactive move,
with profit take demand able to cushion the move. US Mnuchin comments that
US-China trade talks are ongoing, and working on when to travel to China, have
relieved some of the risk pressure as rate edges to Y109.35 at writing.
Resistance noted into Y109.50/60. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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