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FX Daily: Trade uncertainty hits risk currencies
Pro-cyclical currencies are under pressure following President Trump’s suggestion that a phase one trade deal with China may not be concluded this month. Still, the reversal seen yesterday afternoon/overnight is not sufficient enough to wipe out gains earlier in the week. As long as there is no escalation in trade war rhetoric and the dollar does not strengthen, risk currencies should regain support. The key data point of the day is US ISM non-manufacturing. We and the consensus are looking for a modest decline, but the series should stay in expansionary territory (as opposed to the Manufacturing ISM which is ... (full story)