(31 October 2019 ) DAILY MARKET BRIEF 1:Everything tends to support JPY appreciation

The new challenges facing the Sino-American trade talks following strong anti-government protests in Chile in Santiago casts doubt on the timing of the interim trade agreement that was originally scheduled to be signed between 16 and 17 November 2019 by both US and Chinese Presidents amid the Asia-Pacific Economic Cooperation summit. Meanwhile, the latest Bank of Japan monetary policy decision does not surprise much as it maintains short- and long-term rates unchanged despite growing contraction of manufacturing and service activities. In this context, demand for JPY is expected to remain high, as the BoJ’s ability to convince market participants that further easing is conceivable appears limited, while yesterday’s Fed decision to cut interest rates strengthens the trend.