Some of the epic gains from Trump's tariff backtrack were rolled back during the Asia session today.
U.S. equity index futures pulled back. While the drop looks significant in isolation—ES futures have fallen from above 5520 to around 5450 as I write—it’s worth remembering that this index surged from below 5000 just over 12 hours ago.
A few points of interest for markets in our timezone:
Trump’s rollback has lowered the average effective tariff rate from 27% to 24%. While that’s a move in the right direction, it remains at an anti-growth level. This doesn’t bode well for inflation or risk assets going forward. The three-month delay in implementing the new tariffs might also discourage businesses from committing to new investment or capex. Things are less bad—but not significantly better. While de-escalation would be welcomed, there’s been no sign of that from either China or Trump during today’s session.
The People’s Bank of China weakened the yuan again in today’s daily fix—marking the sixth consecutive day of downward adjustment. It’s not a ‘big bang’ devaluation, more a steady drip lower.
On the data front, the key release was further evidence of ongoing deflation in China.
Other headlines were light. China’s leadership is meeting today to discuss potential stimulus measures. Meanwhile, Australia and the European Union are restarting free trade talks, which collapsed two years ago.
In FX, USD/JPY has given up ground during the session, dropping back below 146.80. The dollar is also slightly weaker against the EUR, AUD, GBP, and NZD.
This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about forexlive asia pacific fx news wrap yen takes some back was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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