USD/JPY turns positive with S&P 500 futures, Kuroda reiterates easing bias
- Trump's comments lift S&P 500 futures and USD/JPY.
- The gains could be short-lived as China's retaliation has reignited tit-for-tat trade war.
- BOJ's Kuroda receives little investor attention.
The bid tone around the Japanese Yen weakened in the last hour or so, allowing a bounce in the USD/JPY pair.
The spot is currently trading at 109.58, representing 0.25% gains on the day, having hit a low of 109.14 earlier today.
The recovery could be associated with the uptick in the S&P 500 futures, which seem to have picked up a bid in response to Trump's comments on China. The President reportedly said earlier today that he feels the negotiations with China will be successful.
The 0.5% bounce seen in the S&P 500 futures, however, could be short-lived. After all, the tit-for-tat trade war has resumed with China's retaliatory tariffs. Further, there is looming threat of Trump imposing tariffs on almost everything that US imports from China.
Should the index futures surrender gains, the USD/JPY will likely fall back to near 109.00 levels. Bank of Japan (BOJ) Kuroda was out on the wires a few minutes ago, reiterating the need to continue easing for a while. His comments, however, have largely been ignored by the markets, as there is widespread belief that the Japanese central bank has run out of ammo after having run an unnprecedented stimulus program since April 2013.
Pivot points