Markets continued trading in a “risk on” mode, aided by an FT report saying that US and China are drawing closer in securing a trade deal. Trade talks are set to resume today in Washington, with China’s Vice Premier Liu He preparing to meet with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin. The pound was the main gainer among the G10 currencies, rallying after May said that she would seek another Brexit delay.
Market Sentiment Stays Supported, Washington Trade Talks Begin
The dollar traded lower against the majority of the other G10 currencies, perhaps as US Treasury yields pulled somewhat back after Monday’s decent advance. The main gainer was the pound, with far behind, NOK, EUR and AUD taking the second, third and fourth place respectively. The greenback gained only against the safe haven JPY, while it traded virtually unchanged versus SEK, CAD and NZD.
Although it is not crystal clear by the broader FX performance, the rebound in the Aussie and the weakening of the yen suggest that market sentiment may have remained supported on Tuesday. Indeed, most...
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