Risk Sentiment remained supported during the last day of the year, boosted by Trump’s remarks over the weekend. However, markets started 2019 on a defensive note after China’s Caixin manufacturing PMI for December slipped into contractionary territory for the first time since May 2017, reviving fears over a slowdown in the world’s second largest economy.
Markets Up on New Year's Eve, But Start 2019 on the Back Foot
With markets closed on the New Year’s Day, the dollar traded lower against most of the other G10 currencies on Monday and during the Asian session Wednesday. It gained only against AUD and NZD, while it underperformed versus SEK, JPY and NOK in that order.
Although the weakening of the commodity-linked currencies and the strengthening of the safe-haven JPY suggest a risk-off environment, that was not the case on Monday. Market sentiment remained supported during the last day of the year, with most of the EU bourses that...
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