Today, the investor sentiment changed after it had been announced that Donald Trump will meet with Kim Jong Un in May. The US President said that good progress has been made so far. However, the situation remains unchanged, namely the sanctions will not be lifted. Besides, the White House imposed tariffs on steel and aluminium imports for all countries except for Canada and Mexico. These countries may be exempt if they sign the NAFTA deal. Market participants reacted immediately. During the Asian session, the greenback rose against its major opponents. The USD/JPY pair is trading near the level of 106.70.
The monetary policy of the Bank of Japan did not provide support to the national currency, as the bank's decision was widely expected. The interest rate remained unchanged and the bank's officials provided a positive outlook once again. Meanwhile, China also published macroeconomic statistics. According to official data, the annual inflation rate advanced to 2.9%, exceeding market expectations and hitting the 2-year high.
At the same time, the producer price index grew at slower than expected pace of 3.6% versus the previous rate of 4.3%. Experts predicted a rise of 3.8%. US President Donald Trump managed to change the investor mood, however a rally in the US dollar is likely to be short lived.