Safe havens were the main gainers yesterday, while the commodity currencies underperformed. Perhaps investors have started to price in the uncertainty surrounding the G7 summit, where trade developments are likely to take the front seat. CAD-traders are likely to keep an eye on Canada’s jobs report as well in order to better assess the likelihood of a July BoC rate hike.
Markets Switch to Risk-off Ahead of G7 Summit
The dollar traded mixed against the other G10 currencies on Thursday. It gained against the commodity currencies, AUD, CAD and NZD, while it underperformed against the safe havens. The greenback ended the day virtually unchanged against EUR, GBP, NOK and SEK.
The pattern suggests a shift to risk-off. Perhaps investors have started to price in the uncertainty surrounding the two-day G7 summit in Canada, which starts today, where trade developments are likely to take the front seat.
Rhetoric began to escalate ahead of the summit, when French President Macron tweeted yesterday that the US President may not mind being...
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