Equities tumbled, while the safe-haven yen skyrocketed after US President Trump threatened to impose fresh tariffs on the remaining of the Chinese products imported to the US. The fears of further escalation in the US-China trade dispute prompted investors to increase their Fed-cut bets, which may be adjusted again today after the US jobs data are out. Yesterday, we also had a BoE decision, with British policymakers keeping their policy and guidance unchanged.
Safe Havens Rally as Trump Threatens China, NFPs on the Agenda
The dollar traded mixed against the other G10 currencies on Thursday and during the Asian morning Friday. It gained against AUD, GBP, NZD and NOK in that order, while it depreciated against JPY, CHF EUR and SEK. The greenback was found virtually unchanged against CAD.
The skyrocketing of the yen, alongside the strengthening of the franc and the weakening of the commodity-linked currencies, suggests that, at some point, investors were...
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