The yen was the main gainer against the dollar yesterday as investors remained concerned over increased protectionism under the Trump administration. The main loser was the euro following ECB Draghi’s remarks, while the Kiwi slid after NZ GDP fell short of expectations. As for today, the SNB decides on policy for the first time in 2018.
Yen Strengthens on Protectionism Concerns; NZD Slides After NZ GDP Misses Estimates
The dollar gained somewhat against all but three of the other G10 currencies on Wednesday. It underperformed only against JPY and SEK, while it traded virtually unchanged against NOK. The greenback gained the most against EUR, CHF and NZD in that order.
The currency that strengthened the most yesterday was the yen as market participants remained concerned over increased protectionism under the Trump administration. US equities have also closed in the red, with the S&P 500 and Dow Jones sliding 0.57% and 1.00% respectively. Fears of a trade war stayed in the foreground after a White House spokesperson confirmed that the Trump administration is pressing China to reduce its trade surplus with the US by USD 100bn. This follows reports that Trump is looking to impose tariffs on USD 60bn worth of Chinese products.
Read the full financial markets daily report on JFD Research.