Risk appetite eased yesterday, after US President Trump said that he is the one holding up a deal with China. As for today, amid elevated bets with regards to lower Fed rates, investors are likely to lock their gaze on the US CPIs for May. The pound was yesterday’s main winner among the G10s, coming under buying interest after the better-than-expected UK employment data. Tonight, during the Asian morning Thursday, it’s the turn of Australia to release its jobs report. Given the RBA’s emphasis on the labor market, the report could well shape expectations around the Bank’s future course of action.
Risk Appetite Eases, Investors Lock Gaze on US CPIs
The dollar traded mixed against the other G10 currencies on Tuesday and during the Asian morning Wednesday. It gained against NZD, SEK, CAD, CHF and AUD in that order, while it underperformed versus GBP, NOK, EUR and JPY.
The somewhat stronger yen and the underperformance of the commodity-linked currencies suggests that risk appetite eased at some point yesterday. Indeed, although major EU indices traded in the...
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