Markets opened in a risk-on fashion yesterday after US President Trump and his Chinese counterpart Xi Jinping agreed to restart talks in order to resolve their trade differences. Among the G10 currencies, the dollar gained the most, as increasing chances for an accord between the world’s two largest economies could imply less need for aggressive easing by the Fed. In Australia, the RBA cut rates again, and kept the door open to more in our view. With regards to the energy market, OPEC members decided to extend their current production cuts by 9 months.
Equities Gain and USD Shines on US-China Trade Truce
The dollar traded higher against all the other G10 currencies on Monday and during the Asian morning Tuesday. It gained the most against NOK, EUR and SEK in that order, while it gained the least against JPY.
Although the yen was the second strongest in line G10 currency, it was among the two main losers at Monday’s open, just behind the other safe haven, the Swiss franc. Markets opened in a risk-on fashion yesterday after...
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