At the time of writing, EUR/JPY is trading offered again following the latest trade headlines, albeit holding through the cluster of the 21/50 and 200-hour moving averages, (relatively bullish), at 120.15 having travelled from a low of 119.84 to a high of 120.40. Phase One’ US-China trade deal may not be completed this year – Reuters The mood in the equity space had been relatively robust until the Reuters report that a Phase One’ US-China trade deal may not be completed this year, considering the expectations that the Federal Reserve and even the most dovish of central banks, such as the Reserve bank of Newzealand, are now on hold as well the mounting geopolitical risks. EUR/JPY, which positively correlated to the performance of global equities, is currently -0.08%, previously recovering in tow with stocks on Wall Street which opened lower following a lacklustre performance in European markets. Risks associated with the bill on Hong Kong human rights There is a keen focus on both Brexit and global trade relations, and the recent vow of retaliation from China if President Donald Trump signs the bill on Hong Kong human rights which was rushed through the Senate yesterday has markets in ‘red alert’ – something that will likely support the Yen (for its safe-haven status), and weigh on risk sentiment and the value of global equities. The city of Hong Kong currently enjoys a privileged status with both the US and Europe on economic and trade matters and markets fear risks associated to global trade considering Hong Kong geographic position, trade flows and it middle man status between the US, China and Europe. Moreover, Hong Kong is a relatively advanced and highly developed free-market economy, yet should the belt be tightened on the city, contagion in globalised financial markets could play havoc on market risk sentiment, which is indeed something that EUR/JPY would be tangled up within considering its close ties to the performance of global equities. However, at this juncture, markets are of the view that Trump would veto the bill in order to maintain a course towards securing a trade deal with China, and for that reason, the risk is being brushed aside for the meanwhile. Moreover, it may take a number of weeks before the two versions of the bill with differentiating content and discrepancies will be finally reconciled by a congressional committee – only then can the legislation be sent to US President Donald Trump, who must agree to sign it into law. So, it is very much much a case of ‘keep calm and carry on’ in financial and global markets. However, the worry now is the lack of a sense of urgency for the completion of a ‘Phase one deal’. FOMS minutes preview Looking ahead, the Federal Open Market Committee minutes are due today. The minutes will likely confirm that the Federal Reserve, for now, is through providing insurance and are indeed on hold. Traders will, however, scrutinise the working and anything that is surprisingly dovish could lend a further hand to risk appetite, US stocks and ultimately lift EUR/JPY. Indeed, there is still plenty out there for the Fed to be concerned about which should reflect an easing bias. However, it is how much of an easing bias that will conclusively impact markets. See FOMC Minutes Preview: Reinforcing the rate pause EUR/JPY levels EUR/JPY is subdued below the 200-day moving average and capped by the 50% mean reversion of the mid-March to Sep range. The price is oscillating around the 23.6% of the same range, testing the hourly MA cluster on the latest trade headlines – ‘Phase One’ US-China trade deal may not be completed this year – Reuters FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY slumps to 108.50 after report suggesting trade deal could slip into 2020 FX Street 3 years At the time of writing, EUR/JPY is trading offered again following the latest trade headlines, albeit holding through the cluster of the 21/50 and 200-hour moving averages, (relatively bullish), at 120.15 having travelled from a low of 119.84 to a high of 120.40. Phase One' US-China trade deal may not be completed this year - Reuters The mood in the equity space had been relatively robust until the Reuters report that a Phase One' US-China trade deal may not be completed this year, considering the expectations that the Federal Reserve and even the most dovish of central banks, such… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.