XE Market Analysis: Europe – May 06, 2019

The Yen rotated higher as a risk-off sentiment prevailed in early-week trading after President Trump twittered-threatened China that the U.S. will high tariffs on $200 bln worth of Chinese goods this week and target hundreds of billions more soon. This sent stock markets tumbling, led by a 5.8% rout of China’s CSI 300 index. S&P 500 futures are showing a loss of 1.8%. This backdrop generated demand for safe havens, with the Japanese currency being the go-to haven currency of choice in forex markets. USD-JPY dove over 0.5% in printing a five-week low at 110.28.