Yesterday, financial markets turned to “risk off” following US President Trump’s comments that he is not satisfied with the US-China trade talks. As for today, the focus in the US is likely to turn to the minutes from the latest Fed meeting, while in the UK, GBP-traders are likely to lock their gaze on the CPI data for April.
US President Trump Not Satisfied with Trade Talks; Fed Minutes Under the Microscope
The dollar traded higher against most of the other G10 currencies on Tuesday. It underperformed only against the safe havens CHF and JPY, while it gained the most against the commodity-linked currencies NZD, CAD and AUD. The greenback ended the day virtually unchanged against GBP.
The aforementioned pattern suggests a shift to “risk off”. Indeed, although major European equity markets ended the day in positive territory – even Italy’s FTSE MIB was up –, US stock indices closed in the red. The S&P 500 and the Dow Jones were 0.31% and 0.72% down respectively. Risk aversion continued during the Asian morning Wednesday as well, with Nikkei dipping 1.14%. The catalyst behind the switch in investors sentiment may have been...
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