Markets continued trading in a risk-on mode yesterday, with US President Trump saying that he had a good conversation with China’s President, and reports suggesting that he asked Cabinet to prepare a draft trade deal with China. In the UK, the BoE made no policy changes, but Governor Carney said that policy could move in either direction in case of a no-deal Brexit. As for today, the spotlight is likely to fall on the US employment data for October.
Trump Seeks a Deal with China, BoE Could Still Hike in Case of No Brexit Deal
The dollar traded lower against all but one of the other G10 currencies on Thursday. The only currency against which the dollar did not underperform, and instead traded virtually unchanged, was JPY. The main gainers were the commodity-linked currencies AUD and NZD, with GBP sitting in the third place.
The pattern suggests that risk appetite was boosted again yesterday. Indeed, most major EU and all the US equity indices closed their sessions in positive territory once again. This rolled over into the Asian markets today, with Japan’s Nikkei 225 and China’s Shanghai Composite ending 2.63% and 2.70% up respectively.
Once again, the driving force were headlines surrounding the US-China trade standoff. Around half an hour after the US opening bell, US President Trump tweeted that...
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