US-JAPAN: Trade Min To Visit US 9-11 Mar As Trump Questions Bilat Security Deal

Mar-07 09:01

The Japanese Trade Ministry has confirmed that Minister of Economy, Trade and Industry Yoji Muto will visit the US from 9-11 March for discussions on bilateral economic ties with senior officials, including Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. Last week, Muto met with senior representatives from Japan's steel and aluminium industry to discuss the prospect of higher tariffs being imposed on Japanese exports to the US. Kyodo News reported "Muto plans to directly convey concerns from Japan's industry to the United States, though it remains uncertain whether he will secure the administration's understanding."

  • The announcement of the minister's visit comes hours after US President Donald Trump appeared to criticise the 1960 bilateral security alliance between the two countries. Speaking in the Oval Office, Trump said, "[...] we have an interesting deal with Japan that we have to protect them, but they don't have to protect us. That's the way the deal reads...and by the way, they make a fortune with us economically. I actually ask who makes these deals?"
  • The Japanese gov't has sought to Japan's Chief Cabinet Secretary Yoshimasa Hayashi said in a press conference on 7 March that "We have full confidence that the United States will fulfill its obligations under the Japan-U.S. security treaty by using all available capabilities, including nuclear ones,". Defence Minister Gen Nakatani said, without reference to Trump's comments, that Japan is "working to fundamentally strengthen" its defence capabilities and raise defence spending to 2% of GDP by FY2027.

Historical bullets

MNI: EUROZONE JAN FINAL SRVCS PMI 51.3 (FLASH: 51.4); DEC 51.6

Feb-05 09:00
  • MNI: EUROZONE JAN FINAL SRVCS PMI 51.3 (FLASH: 51.4); DEC 51.6
  • EUROZONE JAN FINAL COMP PMI 50.2 (FLASH: 50.2); DEC 49.6

CROSS ASSET: Yields are pushing lower

Feb-05 08:58

Looking at the German 10yr Yield, as mentioned in the Opening Bund comment, risk remains to the upside in Futures, and further momentum will highlight the 2.30% level, printed a 2.309% low in January.

Today, reference 133.40:

  • 2.30% = 134.19.

For support, while Yesterday's low is situated at 132.72, initial area of interest comes at 132.34 (Monday's opening gap).

Watch Tnotes here, testing session high, decent buying interest is going through, and while this Week saw a 109.20 high print, the next area of interest comes at 109.29, not a Tech level, but where it was trading at pre 18th December FOMC Hawkish meeting.

USDJPY lis through 153.00, with next support seen at 152.55 61.8% retracement of the Dec 3 - Jan 10 bull leg.

MNI: GERMANY FINAL JAN SRVCS PMI 52.5 (FLASH: 52.5); DEC 51.2

Feb-05 08:55
  • MNI: GERMANY FINAL JAN SRVCS PMI 52.5 (FLASH: 52.5); DEC 51.2