Risk sentiment took another hit yesterday, with major global bourses ending their sessions in the red. Despite the minor improvement in investors’ morale late Monday, market participants may have turned skeptical over whether two days of talks are enough for China and the US to reach consensus over trade. On the central bank front, the RBNZ decided to cut rates by 25bps and signaled that further reduction may be possible, which brought the Kiwi under selling interest at the time of the announcement.
Risk Sentiment Sours due to Trade Uncertainty
The dollar traded higher against most of the other G10 currencies on Tuesday and during the Asian morning Wednesday. It lost ground only against the safe-haven JPY, while it traded virtually unchanged versus EUR and AUD. The main losers were NZD, GBP and CAD in that order.
Judging from the performance in the FX world, it seems that despite the minor improvement in investor morale late Monday, risk appetite took another...
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