Major EU indices ended another day in the red, while the US ones rebounded perhaps due to remarks by the White House economic adviser, who said that they are still planning to hold more trade talks in September. However, Asian bourses traded mixed as USD/CNH turned north again, following the PBOC’s decision to still set the onshore USD/CNY rate higher. Among the G10 currencies, the Kiwi was the main loser, tumbling after the RBNZ decided to deliver a 50bps rate cut.
Investors Keep Gaze Locked on the US-China Saga
The dollar traded higher or unchanged against all but one of the other G10 currencies on Tuesday and during the Asian morning Wednesday. It gained against NZD, AUD and CAD, and slightly against CHF, while it was found virtually unchanged versus EUR, GBP, NOK and SEK. The only currency against which the greenback lost some ground was JPY.
The strengthening of the yen and the weakening of the commodity-linked currencies suggests that market sentiment remained subdued. That said, looking at the performance in the...
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