- The USD/JPY pair is poised to end the week with gains as the US Dollar (USD) regains strength.
- The US Dollar is strengthening amid comments from President Trump expressing optimism about impending trade agreements with several nations.
- Chinese officials are refuting claims of ongoing trade discussions with the United States.
The USD/JPY pair is on track to finish the week in positive territory, holding above the 143.00 level. The pair climbed to almost 143.50 on Friday as the US Dollar (USD) has restarted its upward movement, fueled by optimism surrounding potential trade agreements secured by US President Donald Trump with various trading partners.
The US Dollar Index (DXY), which measures the Dollar’s performance against a basket of six major currencies, has rebounded to approximately 99.75 after experiencing a downward correction on Thursday.
During trading in North America, President Donald Trump informed reporters prior to his departure to Rome for Pope Francis’ funeral that “trade deals are progressing favorably,” according to Reuters. He further stated that his administration is nearing “a deal with Japan.”
In the meantime, market participants are showing increased hesitation regarding trade relations between the US and China, influenced by conflicting statements originating from both US President Trump and officials in Beijing. While China is refuting any current economic and trade negotiations with the US, Trump has asserted that Chinese President Xi Jinping contacted him during an interview with Time Magazine.
