It’s about the US-China trade saga once again. Risk appetite got another hit yesterday following reports that the US is considering preventing firms with at least 25% of Chinese ownership from investing in US technology companies. On Monday, US Tr. Secretary Mnuchin warned that the restrictions will not apply only to China, but following his statement, Trump’s trade advisor Navarro noted that there is no such plan.
The dollar traded lower against most of the other G10 currencies on Monday. It gained only against AUD and NZD, while it ended the day virtually unchanged against CAD. The greenback underperformed the most against EUR, GBP and SEK in that order. The safe havens JPY and CHF also gained against their US counterpart.
Once again, the main theme for the markets was “Trade war”. Risk currencies and global equity indices underperformed, while safe havens came under buying interest following weekend reports that the US Treasury Department is considering...
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