 Risk aversion intensifies again today as Trump uses his one old tricky in tariffs again, but turned to Mexico. 5% tariffs will be imposed on all Mexican imports on June 10, and "gradually" move up to 25% in less than 4 months time if Mexico doesn't help on border security "crisis" of the US. The announce came as German Chancellor Angela Merkel urged Harvard graduates to "tear down walls of ignorance and narrow-mindedness, for nothing has to stay as it is." in a speech. And she called for "truthfulness in our attitude toward others" which "requires us not to describe lies as truth and truth as lies". Yen surges broadly today, together with Swiss Franc, and that in turn reinforced the selloff in Nikkei. Canadian Dollar is the weakest one for today, partly dragged down by renewed selloff in WTI crude oil. Though, Australian and New Zealand Dollar has been rather firm this week despite trade war threats. Dollar is the second weakest for today so far. There are increasing talks of so called "insurance cut" by Fed. But such speculation will have to pass the test of today's PCE inflation data first. Technically, USD/JPY has finally broken 109.02 support and fall from 112.40 is resuming for 107.63 fibonacci level. EUR/JPY and GBP/JPY are extending near term decline too, targeting 118.62 and 131.51 respectively. After some brief retreat, USD/CAD's rally resumes today and is on track to 1.3664 resistance. EUR/USD, USD/CHF and AUD/USD are stuck in range as breakout awaited. In Asia, Nikkei closed down -341.34 pts or -1.63%. Hong Kong HSI is down -0.42%. China Shanghai SSE is down -0.20%. Singapore Strait Times is down -0.78%. Japan 10-year yield is down -0.016 at -0.097. Overnight, DOW closed up 0.17%. S&P 500 rose 0.21%. NASDAQ rose 0.27%. 10-year yield dropped -0.009 to 2.227. DOW future is currently down -200pts and we'd probably see DOW loses 25000 handle before month end. | 
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