 It's a roller coaster ride for Euro. It initially dipped after ECB said there will be no rate hike at least through mid 2020. Then it recovered and breaks yesterday's higher against Dollar as the press conference and new economic projections turn out to be not that dovish. Though, upside is capped as President Mario Draghi bluntly said "no" to the idea that next move is more likely a hike. After all, the announcement was, just like Draghi said, an expression of "confidence in the present baseline, but also clear acknowledgement of risks" On the other hand, Dollar's recovery attempt faltered quickly today with tariffs threats ahead. US and Mexico are going to resume negotiations after progress were "not nearly enough" with yesterday's meeting. Trump hinted he's likely to impose the 5% tariffs next Monday. On another front, Trump repeated his threat to tariff all currently untaxed USD 300B of Chinese imports. Such a decision could be made soon after G20 meeting later in month. For now, there is no sign that Trump and Xi will even meet of shake hands there given recent hard-line rhetorics from both sides. In the currency markets, currently, Euro is the strongest one, followed by Swiss Franc. Dollar is the weakest followed by Canadian. But all major pairs and crosses are bounded inside yesterday's range. Over the week, Dollar is undoubtedly the weakest on bet of Fed rate cut. Yen follows as second weakest. Kiwi and Loonie are the strongest ones, followed by Swiss and Euro. In other markets, DOW open slightly higher and is currently up 0.10%. 10-year yield is down -0.0163 at 2.118. In Europe, FTSE is up 0.43%. DAX is down -0.22%. CAC is flat. German 10-year yield is up 0.0229 at -0.201, still below -0.2 handle. Earlier in Asia, Nikkei dropped -0.01%. Hong Kong HSI rose 0.26%. China Shanghai SSE dropped -1.17%. Singapore Strait Times rose 0.12%. Japan 10-year JGB yield rose 0.0042 to -0.121. |
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