US dollar surges
The US dollar is ripping higher against the yen on coordinated statements from China and the US on more talks and tariff delays.
A phone call is scheduled for two weeks from now and there is suddenly hope that a deal is possible. The S&P 500 is up 37 points after rising nearly 50 points. USD/JPY has jumped to 106.51 from 105.25.
The market is sensing fewer Fed cuts if there is a deal. By the same token, the Fed might decide to wait-and-see in September because talks are scheduled. It also shows that Trump doesn’t want to hurt equity markets.