Equities and risk-linked currencies gained, while safe havens slid during the Asian session Thursday, following reports that the US and China agreed on a tentative “truce”, just ahead of the much-awaited meeting between their Presidents at the G20 summit. The report increased hopes that the leaders of the world’s two largest economies may decide to pause their trade war and restart negotiations in order to reach common ground and finalize a deal.
Risk Assets Gain, Safe Havens Slide on US-China Tentative Agreement
The dollar traded lower against most of the other G10 currencies on Wednesday and during the Asian morning Thursday. It gained only against the safe-havens JPY and CHF, while it underperformed versus NOK, NZD, AUD, CAD and SEK in that order. The greenback traded virtually unchanged against EUR and GBP.
The performance in the FX world suggests a risk on trading environment. Indeed, during the EU morning we had the first wave of improvement in investors’ morale, which...
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