Risk assets continued to gain, and safe-havens stayed on the back foot yesterday, marking another day of risk-on trading, with the main driver being once again optimism surrounding the US-China trade negotiations. The Kiwi was the big winner among the G10 currencies, surging after the RBNZ kept interest rates on hold, but appeared less dovish than many may have expected. As for today, the central bank torch will be passed to the Riksbank. UK and US inflation data are also due to be released.
Equities Continue to Rise on US-China Optimism
The dollar pulled back yesterday, underperforming against all but two of the other G10 currencies. The main winner was NZD, gaining after the RBNZ decision (see below), with NOK and AUD taking the second and third place respectively. The currencies which failed to capitalize against the greenback were the safe-havens JPY and CHF, with USD/JPY and USD/CHF trading virtually unchanged.
The pattern suggests another day of risk-on trading, with the dollar pulling back after eight straight days of gains. Indeed, major EU and US equity indices were a sea of green yesterday, with...
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