Global risk appetite has lost some momentum, with reports that US President Trump is blowing hot and cold about whether to reverse some of the import tariffs the US has imposed on China. The S&P 500 is flat at time of writing after having hit a new all-time high yesterday while risk-sensitive currencies have given back recent gains.
The Dollar has made marginal gains but is up only 0.5% from a week ago in trade-weighted terms. It has made head-way against the Euro which is down to its lowest level since early April and against Sterling, with GBP/USD trading below 1.28. The safe-haven Swiss Franc is broadly flat today albeit only 0.2% away from a 3-month low.
The more risk-sensitive Australian Dollar, which edged higher earlier this week after the RBA signalled that its policy rate may remain on hold for the foreseeable future, is down 0.4% today. The Kiwi Dollar has followed suit and is down by a similar magnitude.
