Chinese economic data is out. However the data has failed to meet the expectations. The less than expectation data has reflected the current state of the economic recovery of China. it is exposing a slower pace of the recovery of China. In addition, the political changes in Afghanistan is another crucial event. It is likely to affect the trade of the region. Thus all these factors are severely affecting the Forex trading. Chinese concerns about its economy have given rise to the trade of USD and JPY. The softer start of the week indicates smooth trajectory of Japanese Yen.
Trading Trend of USD/JPY:
Currently the traders of the said pair are dealing with a bearish trading trend. About 54% traders are taking interest in net long trading positions. The price is at 109.32. Last week the consumer confidence data affected the trade of USD. It has strengthened the trade of USD/JPY. Thus on Friday, USD faced a severe selling pressure. Therefore all attention of the traders of the said pair is on the GDP of Japan of the second quarter of 2021. According to research, it is expected to grow by 0.7% on annual basis. However it is expected that the data will not affect the trade of Yen.
Delta Plus & Chinese Economic data:
One of the major reasons was the initial crisis of new form of Virus. COVID seems to continue to disturb the economic recovery of countries. The virus has developed a new form and got itself a new name ‘Delta Plus’. It has even resulted in new series of lockdowns and restrictive measures. Now FOMC minutes are round the corner. According to economists, the FOMC will support the hawkish trend. The Chinese data has stunned the traders. Therefore slower pace of the economic recovery of China will likely to strengthen the trade of its major counter-currencies.
