Following today’s confirmation that National Security Advisor Lt. Gen. H.R. McMaster will be resigning after years of service to the nation, and former UN Ambassador John Bolton will replace him, there has been an increase of 0.5% on the Japanese Yen.
McMasters’ decision to resign is perceived as an attempt to restructure President Donald Trumps’ team of advisors prior to the meeting with North Korean leader, Kim Jong-un. Due to the recent reorganisation of White House employees, there has been a drop in USD/JPY where it is now standing below 105.00 – USD/JPY has not fallen below 105.00 since November 2016. The repercussions of these changes come on the heels of the market turmoil caused by the news of a trade war with China.
The Chinese Ministry of Commerce has responded, saying “The Chinese tariffs would balance out the losses sustained by China through the United States’ increased tariffs on steel and aluminum imports.” Under these tariffs, American produced fresh fruit, wine and nuts, amongst other goods, would be the first to get hit.