USD/JPY rises as US-China trade tensions ease before FOMC rate decision

From Investing.com: 2025-05-07 06:52:00

USD/JPY is on the rise ahead of the FOMC rate decision. The US dollar strengthens as US-China trade talks de-escalate. The Fed is expected to keep rates unchanged, with the USD/JPY trading within a falling channel. The US labour market remains solid, with inflation above target, but the market predicts rate cuts from the Fed this year. The yen and Swiss franc have been safe havens amid trade tariff uncertainty. On the flip side, the FTSE 100’s 17-day winning streak may end due to US-China and US-UK trade talks. The UK strikes a trade deal with India post-Brexit, aiming to double trade to $120 billion by 2030. FTSE leader board sees miners and oil majors benefiting from positive US-China developments. BAE Systems and JD Wetherspoons post strong financial results, while the Bank of England is expected to cut rates tomorrow. Technical analysis shows USD/JPY and FTSE 100 trending within specific channels, with key levels to watch for potential breakouts.



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