EU and US indices closed negative yesterday, with the driver being once again concerns that the US-China trade spat may escalate further. That said, sentiment improved somewhat during the Asian trading today, perhaps as the US eased temporarily the restrictions imposed on Huawei. With regards to the currencies, the Aussie was the main loser, tumbling after the minutes of the latest RBA meeting, as well as RBA Governor Philip Lowe, prompted market participants to increase bets with regards to a June rate cut.
US-China Trade Tensions Weigh on EU and US Equities
The dollar traded higher or unchanged against the other G10 currencies yesterday and during the Asian morning Tuesday. It gained the most versus AUD, NZD and SEK, while traded virtually unchanged against CAD and JPY. The currencies against which the greenback lost some ground were CHF and EUR.
The weakening of the risk-linked currencies Aussie and Kiwi and the strengthening of the safe-haven franc suggest a risk-off trading environment. Indeed, major EU and US indices were a sea of red yesterday. However, Asian indices...
Read the full financial markets daily report on JFD Research.