Equities pulled back, while safe havens gained after US Treasury Sec. Mnuchin said that tariffs on Chinese imports will stay in place until the second phase of the deal. Today, the two nations are expected to sign the first part, but bearing in mind that this is largely priced in, we believe that attention will fall on the text, as well as to any clues on how they intend to move forward. Among the G10 currencies, the franc was the main gainer, getting also boosted by the US’s decision to add Switzerland to its currency manipulators’ watchlist.
Equities Retreat as US Plans to Keep Tariffs in Place After “Phase One” Deal
The dollar traded lower or unchanged against the other G10 currencies on Tuesday and during the Asian morning Wednesday. It underperformed against CHF, GBP, JPY and slightly against NOK, while it was found virtually unchanged against EUR, AUD, and CAD. The greenback gained only against NZD and SEK.
The strengthening of the safe-havens CHF and JPY suggests that risk appetite was hurt at some point yesterday. While the majority of major EU indices traded slightly in the green, in the...
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