- FX update: Safe-haven JPY has remained the strongest major currency for the second day after President Donald Trump shocked the markets with a series of tweets that the US would impose 10% tariffs on $300 billion of Chinese goods that are not currently taxed. As a result, the safe haven yen was the strongest major currency on the day and the risk-sensitive Aussie was the weakest. The Dollar Index, which hit a new 2019 high before selling off yesterday, is lower again as investors wonder whether the escalation in US-China trade dispute may increase the odds for further Fed rate cuts after the central bank opted for a hawkish cut of 25 basis points in mid-week.
- Stocks continue to struggle amid trade concerns while crude oil has managed to rebound after taking a nosedive the day before. Gold remains underpinned ahead of US jobs report.
- Up next: The focus is turning to US jobs data, due for publication at 13:30 BST (08:30 ET). See our NFP report preview article. Then Trump will speak at 18:45 (13:45 ET) on Trade with European Union, in Washington DC. Will he announce EU auto tariffs?
- Data recap: Beating expectations were retail sales from Australia (+0.4% m/m vs. +0.3% expected), Italy (1.9% m/m vs. 0.4%) and Eurozone (+1.1% m/m vs. +0.3%), while UK construction PMI (45.3 vs. 46.0), Swiss CPI (-0.5% vs. -0.4%) and Spanish Unemployment Change (-4.3K vs. -21.4K) all disappointed.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.