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Daily Financial Market News

Tue, 23 Jan 2018 13:00:00 GMT

USD & JPY Get Haven Bids as Trump Protectionism Returns

USD & JPY Get Haven Bids as Trump Protectionism Returns Search DailyFX Home Rates Charts News Market News Real-Time News Daily Briefings Forecast Market Alerts DailyFX Authors Articles Market News Headlines Traders Urged to Respond to Proposed European Rule Changes Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting AUD/USD Rally Approaching Initial Resistance Targets Technical Analysis Analysis Technical Analyst Picks Support & Resistance Daily Technical Reports Pivot Points Sentiment Articles Algorithmic Trading Technical Analysis Headlines FTSE Technical Outlook – Consolidation Period Would Do Some Good Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon As Dollar Weakness Presists, Yen May Rally Calendars Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar Forex Economic Calendar Time Event Actual Forecast Rates Charts Education Education Beginner Intermediate Advanced Expert Free Trading Guides DAILYFX PLUS × Get the best parts of DailyFX.com in the new DailyFX App Download × Join Us For Our Free Webinars Get daily market analysis from our in-house experts Choose from more than 25 webinars each week Put your questions to our experts in real-time Q&As Register now Want to hold off on improving your trading? Click here to dismiss. × Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: The basics of forex trading and how to develop your startegy Foundational knowledge to help you develop an edge in the market What's ahead for major FX pairs, Gold, Oil and more Download a Free Guide Want to hold off on improving your trading? Click here to dismiss. EUR/USD Low High View More Note: Low and High figures are for the trading day. News Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting USD & JPY Get Haven Bids as Trump Protectionism Returns EUR/USD Boosted as German Economic Sentiment Soars GBP/USD Low High View More Note: Low and High figures are for the trading day. News Investor Sentiment Remains Buoyant as US Government Shutdown Ends USD & JPY Get Haven Bids as Trump Protectionism Returns A Weekly Technical Perspective on GBP/USD, USD/CAD, USD/CHF USD/JPY Low High View More Note: Low and High figures are for the trading day. News USD/JPY Elliott Wave Analysis Points Towards 107 Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon Japanese Yen Shrugs at Strong Local Data After Dovish BOJ Gold Low High View More Note: Low and High figures are for the trading day. News Trading Outlook for Gold & Silver, Crude Oil, Copper, DAX & More Gold Prices Rise Even as US Government Shutdown Ends Gold Awaits Dollar’s Lead Before Deciding Breakout or Reversal Oil Low High View More Note: Low and High figures are for the trading day. News Gold Prices Rise Even as US Government Shutdown Ends Weekly Technical Outlook- USD Warning Signs of Stretched Price Action Crude Oil Prices Struggle as Gold Eyes US Government Shutdown BITCOIN Low High View More Note: Low and High figures are for the trading day. News Bitcoin, Ethereum, Ripple; Technical Support Still Needed Bitcoin Shifts to a Mixed Trading Bias Bitcoin, Ethereum, Ripple Prices Crumble, Market Capitalization Slashed View More More Real-Time News Facebook Twitter Youtube Google + USD & JPY Get Haven Bids as Trump Protectionism Returns by  Christopher Vecchio, Sr. Currency Strategist  News events, market reactions, and macro trends. Connect via: Talking Points: - The Trump administration's decision to put tariffs on imported solar panels and washing machines may stoke fears of trade wars and protectionism. - Proxies for emerging market growth, the commodity currency bloc - AUD, CAD, and NZD - have been hit hardest by protectionist fears overnight. - Retail trader sentiment continues to point to a tough trading environment for the US Dollar. Upcoming Webinars for Week of January 21 to 26, 2018 Wednesday at 6:00 EST/11:00 GMT: Mid-Week Trading Q&A: ECB Preview Thursday at 7:30 EST/12:30 GMT: Central Bank Weekly See the full DailyFX Webinar Calendar for other upcoming strategy sessions The end of the US government shutdown doesn't appear to be leaving a lasting impression on markets, which isn't necessarily a surprise when you consider the fact that policymakers merely 'kicked the can down the road' with the three-week continuing resolution. It's possible that we're in the grips of another US government shutdown in a few weeks time.But the big news for markets yesterday wasn't the end of the US government shutdown. Instead, traders should be more concerned with the Trump administration's decision to levy new tariffs on solar panel and washing machine imports. Already East Asian trading partners have condemned the decision, sparking concerns that the fires of protectionism have been stoked once again.The timing of the Trump administration's move is curious. Consider that the next round of NAFTA negotiations in Montreal, Canada are beginning today and are set to run through January 28. Given US President Trump's disposition to eliminate the US trade deficit by any means necessary, the move over solar panels and washing machines may be a signal to Canada and Mexico that 'all options are on the table.'The rise of protectionism, a concern that hasn't been at the forefront of market participants' minds in several months, offers to change the narrative at a time when traders are seeking a new one: the enthusiasm around the tax bill has settled down; concerns about the government shutdown being more than political theater were overblown.The resulting environment is one that is proving beneficial to the traditional safe haven currencies, Japanese Yen and the US Dollar, and deterimental to the currencies most linked to trade and growth in emerging markets, the commodity currency bloc - the Australian, Canadian, and New Zealand Dollars. We're watching the bearish key reversals and/or outside engulfing bars forming in pairs like AUD/JPY, AUD/USD, CAD/JPY, and NZD/JPY today - a series of developments that would be ominous for risk-correlated assets.See the above video for a technical overview of the DXY Index, USD/JPY, EUR/USD, GBP/USD, AUD/USD, AUD/JPY, CAD/JPY, and NZD/JPY. Read more: FX Markets Turn to BOJ & ECB Rate Decision, UK & US GDP in Week Ahead --- Written by Christopher Vecchio, CFA, Senior Currency Strategist To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com Follow him on Twitter at @CVecchioFX To be added to Christopher's e-mail distribution list, please fill out this form DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Related Articles Previous Articles From top fx headlines Related Prev Articles   Traders Urged to Respond to Proposed European Rule Changes   Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting   AUD/USD Rally Approaching Initial Resistance Targets   AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap   Gold Prices Rise Even as US Government Shutdown Ends   USD Dented, but Not Harmed, by US Government Shutdown - So Far   USD Bearish Momentum Continues as Government Shutdown Nears   It’s Still Too Early to Call a Bottom in the US Dollar   USD/CAD Needs a Hawkish BOC For Losses to Continue   USD Sell Off Hits Pause as Government Shutdown Looms Advertisement Upcoming Events Economic Event Importance Actual - Forecast - Previous Importance Actual - Forecast - Previous Forex Economic Calendar A:  Actual   F:  Forecast     P:  Previous NEWS Articles Real Time News Daily Briefings Forecasts DailyFX Authors TECHNICAL ANALYSIS Articles Analyst Picks Support & Resistance Pivot Points Sentiment CALENDAR Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar EDUCATION Forex Trading University Trading Guide DAILYFX PLUS RATES CHARTS RSS Past performance is no indication of future results. 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