Forex – The yen is progressing while Huawei is charged

© Reuters. – The yen was higher than the us dollar after the us authorities have brought criminal charges on the chinese company Huawei, thus strengthening the trade tensions between the two largest economies in the world.

The u.s. department of Justice has charged Huawei, its cfo and two affiliates, bank fraud, for violation of the sanctions against Iran.

Investors fear that the accusations should not complicate the trade negotiations that are to begin Wednesday, when the chinese vice Premier Liu He will meet with the american representative of the Trade, Robert Lighthizer, and other.

Unless an agreement is concluded before 1 march, the us president, Donald Trump has announced that it would increase tariffs on imports from China of 10% to 25%, which, according to investors, would exacerbate the global economic slowdown.

“There are a lot less likely now that we learn something positive from these trade negotiations,” said Nick Twidale, chief operating officer at Rakuten Securities.

“This should be bad for risky assets such as equities and we expect the dollar / yen and the australian dollar will be under pressure,” said Twidale.

The yen, a currency that is sought in times of market uncertainty or economic stress, rose against the greenback, with the USD / JPY decreased 0.1%, to a low of more than a week of 109.23 at 03:48 AND (08h48 GMT).

The dollar index, an indicator of its value against six major peers, has lost 0,11% to a low of two weeks to 95,31.

Investors eagerly await the announcement of policy of the federal Reserve on Wednesday, during which president Jerome Powell is expected to acknowledge the growing risks to the u.s. economy as the global momentum is weakening.

Investors expect the Fed to adopt a policy more conservative than it was in 2018, under the effect of the signs of a peak in the profits of the american companies and the loss of economic dynamism at both national level and at the global level.

The euro was slightly higher, with the EUR / USD to 1,1457.

The pound sterling was stable, with the GBP / USD to 1,3162 before a series of votes on the amendment of the Brexit later in the day after the mass rejection of the draft law the Prime minister May earlier this month.

Britain is on the verge of leaving the european Union on 29 march, but the members of the parliament of the country have not yet found a divorce agreement.

The pound sterling has weakened in the face of the strengthening of the euro, with an increase of the EUR / GBP 0.17% 0,8692.

– Reuters contributed to this report

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