UK Parliament Suspended, Further Escalation of US/China Trade War
08/29/2019 at 09:28AM
FX Strategy 29 Aug 19
CAD and AUD are the top G10 FX gainers today, up 0.21% and 0.1% vs the dollar while NOK and GBP are the top losers, down -0.17% and -0.15% vs the dollar.
Japenese Yen traded lower as risk appetite improved. However, there are still concerns over further escalation of trade wars; U.S PM Donald Trump has made an extra 5% levy on $ 300 billion of Chinese imports official.
Sterling remained in focus after UK PM Boris Johnson suspended parliament and raised the odds on a "no-deal" Brexit.
In the Asian equities space, the Nikkei 225 closed down 0.09% at 20,460.93, Hang Seng closed 0.34% at 25703.5 and Kospi ended -0.4% at 1933.41. The European equities were trading firm with the FTSE up +0.84% at 7174.82, DAX up +0.9% at 11806.44, and CAC up +1.09% at 5427.55. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 1.5063% and the Bund 10-year yield trading at -0.687%. In the energy space, the Brent (front month) is trading down (-0.23%) for the day at $60.35.
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