Forex – Dollar Higher Against Yen after Trump-Kim Meeting

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© Reuters.  Dollar higher against yen after Trump-Kim meeting© Reuters. Dollar higher against yen after Trump-Kim meeting

Investing.com – The dollar was higher against the yen on Tuesday after the historic summit in Singapore where U.S. President Donald Trump and North Korean leader Kim Jong Un pledged to work towards denuclearization on the Korean peninsula.

USD/JPY was up 0.21% to 110.27 by 03:56 AM ET (07:56 AM GMT), near an overnight high of 110.48, the most since May 23.

Market sentiment was boosted after Trump said the process of denuclearization would happen “very, very quickly”, adding he had formed a “special bond” with Kim and the relationship with North Korea would be very different.

Both leaders were set to hold a press conference later in the day.

The euro edged up from overnight lows, with EUR/USD last at 1.1794.

The single currency remained supported after assurances from Italy on Monday that it would not leave the European Union calmed market jitters.

Demand for the single currency was also underpinned ahead of Thursday’s European Central Bank meeting, where it is widely expected to signal intentions to start scaling back its bond purchasing stimulus program.

Financial markets were also looking ahead to Wednesday’s Federal Reserve meeting, where officials are widely expected to raise interest rates for the second time this year.

With a rate hike almost fully priced in, markets are focusing on whether the Fed will hint at the prospect of four rate hikes this year.

The Bank of Japan is also to meet later this week and is expected to keep monetary policy on hold at the conclusion of its meeting on Friday.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed at 93.53.

The pound pushed higher, with GBP/USD rising 0.14% to 1.3400 ahead of the latest UK jobs report later in the day.

The U.S. is set to publish inflation figures which are expected to show that the cost of living continued to accelerate last month.

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