US-China trade war was the center of global focus last week. Markets were expecting a deal with Chinese Vice Premier Liu He visited Washington Instead Trump announced to escalate to full-blown level after China reneged on its commitments during the negotiations. Trump's decision was understandable even though it may not be agreed by most investors, businesses and common people domestically and globally. Situation became worse as Liu's visit ended with nothing but declaration that there were still substantial differences between the two sides. Trade war will likely drag on which should weigh on global market sentiments. Over the week, Yen ended as the strongest one on risk aversion, naturally, followed by Swiss Franc. Euro displayed a lot of resiliences and ended as the third strongest. But it's strength might not sustain since it's know that Eurozone economy, in particular Germany, has been affected much by global trade tensions. Sterling ended as the weakest one on Brexit impasse as politicians looked staying unwilling to find a compromise between themselves. New Zealand Dollar was second worst performing after RBNZ rate cut. Australian Dollar was third even though RBA refrained from lowering interest rates. |
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