Tuesday was a “risk off” day, with major global equity indices trading in the red, perhaps due to Trump’s threat to impose tariffs on EU goods, as well as the downgrade in the IMF’s global growth projections. As for today, the spotlight is likely to turn to the EU summit dedicated on Brexit, with investors awaiting whether the EU will grant the UK another extension. We also have an ECB meeting on the agenda, where we expect Draghi and co. to reiterate that the risks surrounding the Euro area outlook remain to the downside.
Equity Markets Slide on Trump’s Tariff-Threat
The dollar traded higher against most of the other G10 currencies on Tuesday. It gained the most against NOK, CAD and CHF, while it underperformed against JPY, and slightly versus NZD. The currencies against which the greenback was found virtually unchanged were AUD and SEK.
Although not so clear by the performance in the FX sphere, the strengthening of the yen and the performance of the equity market suggest a risk-off trading activity. Major EU and US indices were...
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