The yen lost support, but not for long

USD / JPY pair

The Japanese yen lost its main support yesterday amid the growth of the stock market. On statements by the U.S. president Donald Trump about the difficulties in negotiating with China to expand trade and disrupt the meeting with Kim Jong-no on June 12, as well as the US president's intention of imposing fine to the Chinese telecommunications equipment maker ZTE by $ 1.3 billion, the US stock index S & P500 lost a day 0.31%. The yen declined 15 points yesterday and Nikkei 225 slid down by 1.15%, which is another down of 40 points. The Chinese Shanghai Composite under all circumstances looks more stable with a decrease of 0.55%.

Nevertheless, we expect the recovery of markets after this confusion. Today, relatively good economic data for the USA is expected including the Manufacturing PMI for May 56.6 against 56.5 in April, as well as, services PMI 54.9 against 54.6 and sales of new homes for April at 680K after 694K in March. We are waiting for the price to return to the range of 110.85-111.10, after which the growth continues to 111.70.

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