Entering into US session, Yen and Swiss Franc are trading as the strongest ones for today on risk aversion. Trump’s comments in Bloomberg interview regarding the EU is as bad as China revived the concerns over trade war across the Atlantic, including auto tariffs. The comments attracted strong responses from the EU as they realized Trump is not someone who keep promises. Anyway, Dollar follows as the third strongest, as it strengthens every time as trade tensions escalate. Australian and New Zealand Dollar are the weakest ones for today. Canadian Dollar as the third weakest even though it could make a turn around. Focuses are on the final hours of US-Canada trade negotiations.
Euro is mixed today as on the one hand it’s pressured by renewed tariff threats. Also, Eurozone CPI unexpectedly slowed back to 2.0% yoy August, reaffirming ECB’s stance that it won’t raise interest rates any time soon. On the other hand, Turkish Lira recovers mildly after the government raised tax on foreign currency savings, while scrapped taxes on local deposits.
In other markets, major European indices are all down today. FTSE is losing -0.4%, DAX falls -0.81% while CAC drops -1.14% at the time of writing. In Asian, Nikkei closed down -0.02%, Hong Kong HSI dropped -0.98%, China Shanghai SSE lost -0.46% and Singapore Strait Times declined -0.38%.
