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The US Dollar turns to high impact economic data for its next major medium with Tuesday’ US Consumer Confidence report . The USD JPY overnight oblique volatility spike to 10.01% as forex  traders gear up for potentially considerable spot price swings . Discover out the basics and strategies behind Forex News Trading. The USD/ JPY has been quite Volatile over the last few trading sessions as the emotions geared currency pair whipsaws in response to the latest US China trade war headlines. After getting crushed well below the 105.00 hold to kick off the week, spot JPY USD has since improved owing to reports that China wishes to restart trade talks with the US following last week’s trade war escalation. The upbeat headlines though heard by markets several times before materialize to have so far rekindled risk appetite, but that could quickly change if tuesday’s US Consumer Confidence reports spooks traders.

The US Consumer confidence has gyrated since peaking last October when equities originally began to succumb to slowing worldwide GDP growth driven largely by the US China trade war. Although July’s Consumer Confidence data came in a better than Predicted at 135.7, the timing of the report likely received a boost hopes for the Federal Reserve to drop rates in addition to the Trump Xi G20 summit meeting and apparent de-escalation in Sino American trade tensions at the time. The traders have been taken aback by another flare-up in US China trade war uncertainty subsequent retaliatory tariff threats from both nations among discontinuous red depression signals like the US Treasury yield curve inverting along the 2year and 10 year maturities. The Tuesday’s release of US Consumer Confidence data for August is predicted to drop to a notable is the largest consumer sentiment reading.

 Similar survey of Consumers, which could foreshadow a big fail to spot when the August US Consumer Confidence Data across the wires. A data point that comes in materially below consensus has potential to damage risk appetite as well as boost Fed rate cuts bets with both market reactions standing to send spot JPY/ USD swoon. Other expected reading could  persuade the recovery in sentiment seen so far this week but is not likely to nudge rate traders enough to question the prospect of another 25 bps interest rate cut next month. The Consumer Confidence may not be a primary financial indicator.