XE Market Analysis: Europe – Jun 01, 2018

USD-JPY crawled higher during the Tokyo session, as did EUR-JPY and other yen crosses. USD-JPY lifted back above 109.0, though remained shy of yesterday’s peak at 109.24. A choppy but overall sanguine reaction in global markets, some would say surprisingly so, to the U.S. escalation of trade warring yesterday has seen the yen lose the safe haven premium that was initially imparted on Washington’s announcement. There is one narrative in markets that is downplaying the impact of the announced trade tariffs, this far, as likely to have only a tiny impact on GDP in affected economies.