Free Trial

Tariff delay lights fire under greenback -A...>

FOREX
FOREX: Tariff delay lights fire under greenback
-A substantial three-month delay to the fresh wave of tariffs that was due on
Chinese goods helped boost sentiment shortly following the US open, allowing
recent drops in risk and trade sensitive currencies to be partially reversed.
The move by the USTR was endorsed by President Trump in order to avoid impacting
the consumer in the lead-up to Christmas. USD/JPY rallied sharply on the news,
taking out Y106.00 resistance to hit the best levels since Tuesday last week.
Similarly the greenback rallied in sympathy with Treasury yields, which rose as
the curve flattened.
-No surprise to see haven FX at the bottom of the pile Tuesday, with CHF and JPY
weighed by rebounding equities (core Europe finished higher by around 1% and US
indices rose as much as 2%). This will have come as a relief to the SNB after
EUR/CHF touched fresh cycle lows of 1.0841.
-German GDP, UK inflation and US import/export prices indices are the calendar
highlights Wednesday. Once again, there are no central bank speakers on the
docket.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.