The yen fell to a six-week low, as demand for safe-haven assets fell amid signs that China's active actions could limit the negative impact of the trade war on the global economy. The euro fell as traders prepared for the European Central Bank to launch a new round of monetary stimulus, while the pound rose on the news that British Prime Minister Boris Johnson could soften his Brexit strategy.
USD / JPY is increasing by 0.2% to 107.81; the pair reached 107.85, the highest since August 1, after the Global Times announced that Hu Xijin said China would announce measures to mitigate the negative effects of the trade war with Washington. Hu tweeted that these steps "will benefit some companies from China and the United States" 10-year-old Treasuries stopped a five-day decline. The currency haven, the Swiss franc, has weakened; USD / CHF rose 0.2% to 0.9940.
USD / JPY is “within reach of the level of 108.00”. The yen remained at a low after news that Hong Kong Exchanges and Clearing Ltd. Unexpectedly offered 36.6 billion dollars for the London Stock Exchange Group Plc. The currency is also under pressure from the news that the Bank of Japan may consider new mitigation measures at a meeting on DC policy next week. The ECB will announce its new policy on Thursday, the Fed on September 18 and the Bank of Japan on September 19.
EUR / USD drops 0.3% to 1.1015, the euro is falling for the second day in a row. Markets expect the ECB to lower its deposit rate and unveil further incentive measures. The 1-week implied EUR / USD volatility jumped to its highest level since January - the indicator covers both the ECB and the US Federal Reserve.
The pound rose on the news that Johnson is considering ways to circumvent one of the UK Parliament’s main objections to the existing Brexit agreement, the border issue with Northern Ireland. Sterling rose 0.1% to $ 1.2359. AUD / USD has not changed much and is trading at 0.6864.