- USD / JPY falls nearby while the US dollar corrects before trade negotiations between the United States and China.
- President Trump announced that prices on China could be reduced to 80%.
- Japan's overall household expenses increased 2.1% over the year in March.
The USD / JPY pair is at nearly 145.00 during North American negotiation hours on Friday after failing to extend its advantage of almost a month of 146.20 earlier during the day. The pair is corrected as the US dollar (USD) folds, investors becoming cautious before trade negotiations between the United States (United States) and China on Saturday.
The US dollar index (DXY), which follows the value of the greenback against six main currencies, makes its earnings initial and falls to almost 100.30.
Investors will pay particular attention to the American-Chinese trade discussions, because the current tariff war has led market experts to retrograde the United States and global economic prospects.
Before the American-Chinese meeting, President Donald Trump reported that prices on Beijing could be reduced to 80% through an article on the truth. “The 80% price on China seems right! It's at Scott Bessent,” said Trump.
In the last two negotiation sessions, the US dollar has firmly negotiated while the Federal Reserve (Fed) guided that there is no precipitation for interest rate reductions in the announcement of monetary policy on Wednesday and the declaration of the trade agreement of the United Kingdom Kingdom (UK), the first by the White House since the release of reciprocal tariffs.
Meanwhile, the Japanese yen (JPY) surpasses its peers on Friday, because uncertainty before Sino-Us trade negotiations increased its security request.
Japanese yen price today
The table below shows the percentage of variation in the Japanese yen (JPY) against the large currencies listed today. The Japanese yen was the strongest against the Canadian dollar.
| USD | Eur | GBP | Jpy | Goujat | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.57% | -0.52% | -0.71% | -0.01% | -0.47% | -0.23% | -0.59% | |
| Eur | 0.57% | 0.03% | -0.18% | 0.55% | 0.10% | 0.33% | -0.04% | |
| GBP | 0.52% | -0.03% | -0.21% | 0.52% | 0.06% | 0.29% | -0.04% | |
| Jpy | 0.71% | 0.18% | 0.21% | 0.72% | 0.26% | 0.48% | 0.16% | |
| Goujat | 0.00% | -0.55% | -0.52% | -0.72% | -0.47% | -0.22% | -0.56% | |
| Aud | 0.47% | -0.10% | -0.06% | -0.26% | 0.47% | 0.23% | -0.10% | |
| Nzd | 0.23% | -0.33% | -0.29% | -0.48% | 0.22% | -0.23% | -0.33% | |
| CHF | 0.59% | 0.04% | 0.04% | -0.16% | 0.56% | 0.10% | 0.33% |
The thermal map shows the percentage of variations in the main currencies against each other. The basic currency is chosen in the left column, while the quotes motto is chosen in the upper row. For example, if you choose the Japanese yen of the left column and move along the horizontal line to the US dollar, the percentage of variation displayed in the box will represent JPY (base) / USD (quote).
At the national level, the overall data for Japan household expenses for March have been better than expected. Overall household expenses, a key measure for consumer spending, increased at a robust 2.1% annual sliding rate compared to 0.2% estimates. In February, the measurement of consumption expenditure decreased by 0.5%.
US dollar FAQ
The US dollar (USD) is the official currency of the United States of America and the “de facto” currency of a large number of other countries where it is in circulation alongside local tickets. It is the most negotiated currency in the world, representing more than 88% of all global turnover, an average of 6.6 billions of dollars of transactions per day, according to data from 2022. After the Second World War, the USD took over from the British book as a global reserve currency. For most of its history, the US dollar was supported by gold, until the Bretton Woods agreement in 1971 when the Order stallion left.
The single most important factor on the value of the US dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to reach price stability (controlling inflation) and promoting full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices are increasing too quickly and inflation is greater than the 2% target of the Fed, the Fed will increase rates, which helps the USD value. When inflation falls below 2% or the unemployment rate is too high, the Fed can reduce interest rates, which weighs on the greenback.
In extreme situations, the federal reserve can also print more dollars and promulgate a quantitative relaxation (QE). QE is the process by which the Fed considerably increases the credit flow in a blocked financial system. This is a non -standard political measure used when credit has dried up because the banks will not lend themselves (by default of the fear of the counterpart). This is a last appeal when the simple drop in interest rates is unlikely to achieve the necessary result. It was Fed's weapon of choice to combat the credit crisis that occurred during the great financial crisis in 2008. It implies the Fed Print more dollars and use them to buy US state bonds mainly from financial institutions. QE usually leads to a lower US dollar.
The quantitative tightening (QT) is the opposite process by which the federal reserve ceases to buy obligations from financial institutions and does not reinvest the principal of the obligations it holds in new purchases. It is generally positive for the US dollar.
