Market Sentiment was hurt yesterday following a report that the US President plans to proceed with tariffs on USD 200bn worth of Chinese goods as soon as next week. The dollar and the yen strengthened, while equity indices slid. As for today, attention is likely to turn back to NAFTA talks as the deadline nears.
USD and JPY Strengthen as Trump Hurts Risk Sentiment
The dollar traded higher against most of its G10 counterparts yesterday. It gained the most against CAD, AUD and EUR in that order, while it lost ground versus JPY, CHF and SEK.
Once again, the main driver of the greenback was a change in the broader market sentiment, and this is evident by the strengthening of the other currency that tends to attract safe-haven flows when investors get nervous, the yen.
Risk appetite was hurt yesterday following a report, citing six people familiar with the matter, that US President Donald Trump wants to proceed with imposing tariffs on USD 200bn worth of Chinese goods as soon as the
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