Today Forex market was driven by a new broad-based risk-aversion. That was sparked by the last night comments from the US President Trump that he suggest Japan is in the next target amidst ongoing US-Sino trade row. US dollar, Yen and gold the Safe-havens assets were boosted but at the expense of the higher-yielding risk assets such as the oil prices, Asian equities, copper.
The Aussie was the worst hit by risk-aversion, sell-off almost near 2018 lows of 0.7140. Now, the USD/JPY pair tumbled to 110.40 before recovering to 110.60 towards Asia session closing. The cad also gains some power on Trump’s remarks on the NAFTA deal and ragged USD/CAD down to 1.3115 level.
US-China trade war could last two more years
Daily Analysis - 07/09/2018