Trump Bill signing jolts Yen hits Stock Futures
Yen bounces back after Trump signs bills, US stock futures slide.
This morning’s Asian session was rocked after news hit that President Trump signed bills backing Hong Kong protesters.
The president says he “signed these bills out of respect for President Xi, China, and the people of Hong Kong.” He also says he hopes “Leaders and Representatives of China and Hong Kong will be able to amicably settle their differences.” – CNBC
This sent traders flying back into safe-havens mainly the Yen as its timing couldn’t be worse with phase one of the trade deal yet to be finalized. Bejing, not happy with the bills being passed.
The JPY jumped to the AUD, EUR and USD. Gold added 0.22% in two hours while the US stock index futures fell, the DOW losing over 70 points. Questions now emerge, with this have any major impact on the phase one of the trade deal? Or have we just seen a small flash in the pan?
With a democratic win in the Hong Kong election did the U.S. have any other choice but to back the result being a champion of democracy?
We wait with interest to see how this plays out. But for now, it looks like markets have already started to discount it with the Nikkei fighting back from earlier losses to be just in the red. The GBP, EUR and USD are now trading in the green recovering some of their earlier losses.
Today’s chart is the JPN225, we can see the sharp decline and small buyer fightback on the 1H timeframe.