Market sentiment took a 180-degree turn yesterday, with equity indices turning down and safe havens taking the font seat, after US retail sales for December fell the most since September 2009. US President Trump’s decision to declare a national emergency in an attempt to fund his Mexican-border wall without congressional consent may have also weighed on market sentiment. In the UK, PM May suffered another defeat in Parliament, which, although symbolic, weakens her hand in last-ditch talks with EU officials. As for today, attention is likely to be on the conclusion of the US-China trade talks.
US Retail Sales Drop the Most Since 2009, UK PM May Defeated in Parliament
The dollar traded higher against the majority of the other G10 currencies. It outperformed GBP, CAD, SEK, AUD and NOK in that order, while it was lower versus the safe havens CHF and JPY. The greenback traded virtually unchanged against EUR and NZD.
The pattern suggests a switch to risk-off trading, something that was evident by the performance in the equity world as well. Most major EU bourses ended their trading in...
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