EU FX Handover: Sentiment Remains Cagey

  • Risk assets staged a bit of a short-covering recovery after the escalation in trade wars between US and China last week. Stocks and commodity dollars, led by NZD, gained ground, while GBP and EUR were among the weakest.
  • Sentiment remained cagey, though, and with Donald Trump tweeting away, mostly about how China is losing out, it looks like a deal is nowhere near about to be signed.
  • Matteo Salvini, leader of Italy's populist League Party, sent the euro lower when he said his country is ready to break EU fiscal rules governing the size of its budget deficit.
  • Data recap:
    • UK unemployment rate lowest since 1974 to 3.8% vs. 3.9% expected and last
    • Average Earnings Index 3m/y 3.2%, down from 3.5% and less than 3.4% expected
    • Euro Zone Industrial Production -0.3% in March as expected and -0.2% last
    • German ZEW Economic Sentiment -2.1 vs. +5.1 expected and +3.1 last

Related tags: Forex

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