Risk assets lost traction yesterday, perhaps due to a blend of reasons. One of them could be the escalating tensions between India and Pakistan, while another may be comments by US Trade Rep. Robert Lighthizer that the unresolved issues between China and the US are “too serious”. The slide in China’s January PMIs did not help either. The pound continued sitting on the front seat, keep gaining on hopes that a no-deal Brexit can be averted. As for today, the spotlight is likely to fall on the US GDP data for Q4, which was delayed due to the partial government shutdown.
Equities Slide in ‘Risk Off’ Trade, CAD up as Oil Rebounds
The dollar traded lower against most of the other G10 currencies on Wednesday. It traded higher against AUD, NZD and JPY, while it traded virtually unchanged against EUR. The greenback underperformed against GBP, SEK, NOK, CHF and CAD in that order.
The FX performance pattern does not paint a clear picture with regards to the broader market sentiment, as the risk-linked currencies Aussie and Kiwi as well as the safe-haven yen were found lower this morning. However, the performance of the...
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