Chinese Yuan Lows & Brexit Developments
08/27/2019 at 09:27AM
FX Strategy 27 Aug 19
SEK and JPY are the top G10 FX gainers today, up 0.39% and 0.34% vs the dollar while NZD and AUD are the top losers, down -0.41% and -0.35% vs the dollar.
Japanese yen was up as investors fled to safe havens amid U.S.-China trade wars worries. There are concerns that trade wars may escalate as both sides announced new tariffs. The Chinese Yuan was trading near 11-1/2 year lows.
Sterling caught a bid in early hours of trading as investors took in latest developments on Brexit; PM Boris Johnson said he was prepared to take Brexit talks to the last minute. Although the British pound is still off its recent highs, large short positions against the currency makes the positions vulnerable to a squeeze. In the Asian equities space, the Nikkei 225 closed up 0.96% at 20,456.08, Hang Seng closed -0.06% at 25664.07 and Kospi ended 0.43% at 1924.6. The European equities were trading weaker with the FTSE down -0.56% at 7055.06, DAX down -0.2% at 11634.94, and CAC down -0.35% at 5332.18. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.5165% and the Bund 10-year yield trading at -0.668%. In the energy space, the Brent (front month) is trading up (0.55%) for the day at $59.02.
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