Overnight, investors’ appetite got hit by headlines suggesting that the US would release a tariff list on 200bn worth of Chinese imports, something that happened a couple of hours thereafter. As for today, besides the US-China dispute, investors are likely to also pay attention to the BoC decision. The Bank is widely expected to raise rates, so, if this is the case, focus will quickly turn to any hints with regards to officials’ future policy plans.
US Announces List of USD 200bn Worth of Chinese Products for Tariffs
The US dollar traded higher against most of its G10 counterparts yesterday. The sole winner was GBP, while the safe havens CHF and JPY traded virtually unchanged against their US counterpart. The big losers were AUD and NZD.
The pattern suggests a shift to “risk off”, and once again the word that triggered the switch in investors’ sentiment was “tariffs”. Overnight, headlines suggested that the US is preparing to release a tariff list on 200bn worth of Chinese imports, something that happened a couple of hours thereafter. US officials released a list of Chinese products that will be subject to 10% tariffs including...
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