XE Market Analysis: Asia – Mar 22, 2018

The DXY bounced to 89.96 highs, after printing 89.41 one-month lows in London morning trade. Risk off conditions prevailed through the session, as trade concerns rose following Trump’s direction to the U.S. Trade Office to consider increased tariffs on Chinese goods, with a list that initially would include $50 bln in Chinese exports. The dollar was supported by safe-haven flows. Wall Street was not impressed however, as stocks fell sharply, and yields followed. EUR-USD topped at 1.2332, before bottoming at 1.2286. USD-JPY fell to 105.27 early, though managed to recover to 105.81 highs.