Last week the dollar experienced a mixed weeker economic release including Non- Farm Payrolls and Manufacturing PMI and the USDJPY dropped about 0.37 % on friday. The week started with a Gap down of around 40 pips which dipped till 110.200 and bounced back in the early sessions. Chinese representatives are heading to Washington this week to resume trade talks, and ahead of the meeting, market’s were speculating a trade deal would be achieved these days. However, during the weekend, US Trade Representative Lighthizer, said that China was pulling back from some commitments it may previously, prompting Trump’s reaction.

The movements were exacerbated by thin trading, with Japanese markets close. London is also off today, and speculative interest is waiting for American traders’ reaction to decide whether to do next. The US has quite a scarce macroeconomic calendar today, with no relevant data scheduled. “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump said via Twitter.

Analysts said the move appeared to aim at putting pressure on China during what was supposed to be the final stages of trade talks between the two countries. Chinese officials have said in the past they won’t negotiate with a gun to their heads.

The yuan and Chinese stocks both fell on the news. The dollar rose to a four-month high against the yuan and had risen 0.7% to 6.7802