Global Themes

EUR: Risk sentiment took a hit again early this morning after US announced another USD 200bio China tariff list. USD was bid on safe haven play and but the pair is still sitting in the middle of the 1.1508-1.1853 recent range. ECB’s Draghi, Praet and Nouy will speak tonight.

JPY: USDJPY fell from May high at around 111.50 again on risk off safe haven JPY bids on trade war issues. US CPI is the next key event risk besides of trade war. Recent market events may have reduced the likelihood of 4 rate hikes by FOMC this year.

GBP: Sterling trading heavy at the moment but getting small support as PM May survived leadership contest for now. Next key event is the meeting between Trump and May happening tomorrow and Friday.

CAD: USDCAD is bid ahead of BoC meeting tonight as market is pricing a rate hike but market is worried about a dovish forward guidance.

AUD: Aussie bull run came to an end after US fired the second bullet on trade war vs China, spurring the next round of risk off move. AUDUSD is below short term resistance of 0.7417 and next up is 0.7397 and 0.7377.

CNH: USDCNH is now trading more than 0.5% higher and the lowest level since 3 July on trade war fears.

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