The US dollar is attempting to gain bullish
momentum since the beginning of the week. However, today’s economic statistics may cancel the greenback rally. The yen is growing steadily. Demand for safe-haven assets remains high. The Japanese yen and US Treasuries are climbing up. Traders are still doubting the progress in trade negotiations, especially after the comments from White House officials. According to Peter Navarro, it is impossible to reach a compromise as China asks too much. Nevertheless, Washington is waiting for a delegation from China for further talks in September. Market participants still want to believe in the likelihood of a trade deal but the facts say otherwise. Risk sentiment is quite volatile. The yen benefits from it, growing steadily. However, the currency is weighed down by the escalation of the trade conflict between Japan and South Korea. At the Asian session, the dollar/yen pair is sliding down again, trading at 105.86. The US dollar index is changing slightly, locating at 98.23. Traders are awaiting the publication of macroeconomic statistics from the United States. Investors will focus their attention on a preliminary flash estimate of GDP for July. Weak data may revive demand for risky assets. At the Asian session, the Australian dollar was trading mixed. First, the AUD/USD pair was trading in the red near the record lows updated on August 7. Then, it rebounded to 0.6736. The pair is also pressurized by further escalation of the US-China trade conflict, as well as by weak macroeconomic data from Australia. The yuan continues to fall against the US dollar for 11 consecutive days. The yuan is trying to recover but the sentiment towards the currency is still bearish.