Risk sentiment took another hit overnight, after US President Donald Trump threatened to impose tariffs on all Mexican imports until illegal immigration through Mexico stops. The safe havens JPY, CHF and USD strengthen, while government bond yields slid further, with the US 10-year treasury rate hitting a new 20-month low. As for today, we get the US yoy core PCE rate for April, which is the Fed’s favorite inflation gauge, Germany’s preliminary CPIs for May and Canada’s GDP data for Q1.
Safe Havens Strengthen as Trump Threatens Mexico
The dollar continued gaining against most of the other G10 currencies. It underperformed only against JPY and CHF, while it was found virtually unchanged against SEK. The main losers were NOK, AUD, and NZD in that order.
The strengthening of the safe-havens and the weakening of the commodity-linked currencies suggest that markets turned risk-off again at some point. Although most EU and US indices traded in...
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