The USD/JPY currency pair has slumped around 0.12 percent to around 110.35 in the early European trading session this 15th of February. This extends the decline that took place the previous day. This decline happened simultaneously with the fall of AUD/USD, which is the barometer of interest in other market risks. 

The Reason Of The Collapse

The reason that this happens is because the release of US retail sales data still has an effect, while the negotiation between US-China has again faced obstacles. In the New York session, the US retail sales data for December 2018 reportedly dropped dramatically and missed far from the initial estimation. The report has reinforced expectations that the Fed will not raise interest rates this year. 

Nick Twidale of Rakuten Securities Australia said that the poor retail sales data has made the view that this year's interest rates are unlikely to change. USD/JPY is an indication of the sentiment of risk aversion now. Twidale is expecting that the currency pairs cross Yen to be appreciated along with the Swiss Franc.

Meanwhile, bad news has spread from the US-China trade negotiations. This has become another focus on the market, especially forex traders who have been in the forex world long enough or those who are just learning forex. If you are one, you can visit Didimax to understand more about how this affects forex in a more detailed way.

Larry Kudlow, the Economic Adviser of White House has denied rumors that the US President Donald Trump would delay the deadline for reaching an agreement. Kudlow said that there were plans for a meeting between the two top US negotiators and Chinese President Xi Jinping on Friday, but there was no decision to postpone the deadline of 1st of March.

USD/JPY From Low Position

This currency pair of USD/JPY for the second session straight has traded with a negative bias. After once again failing to maintain or build the momentum beyond 111.00, the US dollar retail sales data has shown its shocking disappointment. This pushes some long trading that is aggressive in the previous session. The data was overshadowed by the optimism that the chance of resolution of the US-China trade troubles. This has led to and proved by the slight decline in investors' wants to take riskier assets. This results in an additional boost for Yen's currency status. This mood of investors continued to support the demand for traditional safe currencies. 

This has brought pressures under the major currencies, even though there are purchases of USD which helped to ease the pressure of bearish and bounce off some multi-day lows. The US economic map currently shows some second layers data from Empire State Manufacturing Index, production data for industrial and Prelim UoM Consumer Sentiment. This will be seen for short-term on the last day of trading of the week. 

US-China Talk Continues, US Retail Sales Fall

The talk of US-China was held in Beijing between Robert Lighthizer as the US Trade Representative, Steven Mnuchin as the Treasury Secretary, Liu He the Chinese Premier and the President Xi Jinping. This involvement of Chinese government in economy and intellectual property has remained an issue. 

As there are reports saying US may postpone the deadline from March to May has helped improve this ambient/ But, at the end of the week, it was clear that both US and China have remained far apart. To know more about this kind of news, you can go to Didimax, a reputable broker website, to learn forex either free or with professional mentors that can help you through this matter.