Market sentiment was hit again yesterday, as tensions between the US and China over trade intensified. Trump warned China not to retaliate over Friday’s tariff hike as this will only get things worse. However, the nation defied those warnings and officially announced that it would proceed with higher tariffs on USD 60bn worth of US goods from June 1st. As for today, apart from headlines over the US-China saga, we will also keep an eye on the economic calendar, with Sweden’s inflation data for April and the UK employment report for March scheduled to be released.
Markets Trade in “Risk Off” Manner as China Hits Back
The dollar traded mixed against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained against GBP, AUD, CAD and NOK in that order, while it depreciated against CHF, JPY and EUR. The greenback was found virtually unchanged versus NZD and SEK.
Once again, the strengthening of the safe-havens and the weakening of the commodity linked Aussie suggest that investors’ morale was hit again, despite the small relief on relatively sanguine remarks in the...
Read the full financial markets daily report on JFD Research.