In the absence of any further escalation in the US-China trade dispute, risk sentiment improved yesterday. We also got inflation data from the US, with both the headline and core CPI rates rising, which supports the case for the Fed to end 2018 with a total of four hikes. In the Eurozone, the ECB minutes passed the same message as the meeting and thus, the euro remained unfazed at the time of the release.
Market Sentiment Shifts Back to “Risk on”; US CPIs Support Two More Fed Hikes by Year-End
The dollar traded mixed against the other G10 currencies on Thursday. It gained the most against SEK, CHF and JPY, while it underperformed versus AUD, CAD and NZD. The greenback traded virtually unchanged against EUR and NOK.
In the absence of any further escalation in the US-China trade dispute, risk sentiment improved, with safe havens coming under selling interest and riskier assets (like commodity currencies and equities) under demand. On Wednesday, we noted that the latest news on the USD 200bn of Chinese goods were actually...
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