We had a very eventful day yesterday with developments rolling over into the Asian session Friday. Overnight, the US tariffs of Chinese goods took effect, with markets responding in a “sell the rumor, buy the fact” fashion. The dollar reacted little on the Fed minutes yesterday, but the probability for two more hikes this year rose. Focus for USD-traders now turns to the US jobs data for June. Moving to the pound, it traded in a roller-coaster mode on Thursday. It rose on BoE Governor’s remarks but tumbled thereafter on Brexit concerns.
US Tariffs Take Effect, Fed Minutes Support More Hikes, Employment Report Under the Microscope
The dollar traded lower against most its G10 counterparts yesterday. It gained only against JPY, while it traded virtually unchanged against GBP and CHF. The main gainers against the US currency were NOK, NZD and SEK, in that order.
The safe-haven yen remained on the back foot, while riskier currencies like AUD and NZD outperformed the greenback, even after the US tariffs on USD 34 bn worth of Chinese goods took effect overnight. Shortly after the US decision, China responded with a statement saying that it was forced to retaliated, which means that...
Read the full financial markets daily report on JFD Research.