Risk-off tone for markets following President Trump’s threat to increase tariffs
Cate Camerota | November 13, 2019
Haven assets rose after a speech from President Donald Trump. He stated that the US would increase tariffs on China if the first step of a broader agreement isn’t reached causing renewed anxiety around economic growth. Reserve Bank of New Zealand surprised markets by keeping its policy rate at 1%. The NZD rose as much as 1.4%.
November 13, 2019
EUR/USD 1.1004 GBP/USD 1.2836 USD/CAD 1.3254 AUD/USD 0.6830 USD/JPY 108.79 USD/CNH 7.0270 USD/ILS 3.4928 USD/MXN 19.4620 USD/CHF 0.9907 USD/INR 72.0887
USDThe greenback is largely mixed as the market awaits comments from Fed Reserve Chairman Jerome Powell who will address the Congress’s Joint Economic Committee later today. Traders will be focused on clues about the direction of the economy and risk sentiment.GBP
Sterling has managed to maintain gains and hold a steady trading range. The market is anticipating the outcome of the upcoming election which could dictate future market movements.EUR
EUR/USD remains in a tight 50 pip range over the last three days. Currently trading at the lower end of the range on dollar strength following the release of US CPI.CAD
The loonie is lower this morning following the decline in oil prices and as risk sentiment diminishes after Trump’s speech yesterday. The market will focus on commentary from Powell’s speech later today.ASIA/PACIFIC
JPY strengthens slightly against the USD as market appetite for safe haven currencies increases on uncertainty around the US and China and as protests in Hong Kong escalate.
NZD/USD climbed as much as 1.4% after the Reserve Bank of New Zealand maintained rates at 1%. The central bank stated that economic developments since the decision to lower rates in August did not warrant further easing.