Dollar weakens again in early US session after mixed job data, but selling pressure is so far limited. Markets are cautiously awaiting tomorrow's non-farm payroll report for sure. But more importantly, the development in trade relationship with Canada and China is the focal point. Canadian Foreign Affairs Minister Chrystia Freeland will have another day of meeting with US Trade Representative Robert Lighthizer. Meanwhile, Trump is ready to fire another shot at China once the hearing on the tariffs on USD 200B in Chinese goods ends today. Euro and commodity currencies are generally weak follow Dollar. Meanwhile, Swiss Franc, Sterling, and Yen are the strongest ones. But the picture could easily be changed should there be any break through in US-Canada trade talks, or any new developments in US-China trade war. And, it should be noted again that Dollar surges almost every time there is an escalation in trade tensions. In other markets, European stocks stabilized from yesterday's steep selloff and turned mixed. FTSE is down -0.21% at the time of writing, DAX up 0.12%, CAC up 0.27%. 10 year German bund yield drops -0.008 to 0.337. 10 year Italian yield also dropped -0.087 to 2.862. Earlier today, Asian markets continued to be the bigger victims in current concerns over emerging market crisis. Nikkei was down -0.41%, Hong Kong HSI was down -0.99%. China Shanghai SSE was down -0.47% at 2691.59, below 2700 handle. Singapore Strait Times dropped -0.27%. Gold rides on Dollar's weakness and is back at 1205. Focus is on 1209 minor resistance for indicating resumption of rise fro 1160.36. |
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