Asia FX Handover: Cautious Trade Ahead of ECB and Trade Talks
Matt Simpson June 6, 2019 5:12 AM
- FX markets are trading in tight ranges ahead of today’s ECB meeting. It’s also a mixed picture and low volatility session for equity markets as traders await further news from US-Mexico trade talks.
- JPY is currently the strongest major and USD is the weakest. We’re closely watching USD after yesterday’s reversal. EUR/USD is hugging yesterday’s lows after printing a bearish reversal and warning of a fakeout. AUD/USD is holding up today despite a 3% decline in iron prices, having found resistance around 70c.
- Trump keeps the heat on Mexico, stating “not nearly enough” progress is being made for them to avoid tariffs. Mexico’s Foreign Minister, Marcelo Ebrard says that talks are based on migration flows and not tariffs.
- The IMF’s MD, Christine Lagarde doesn’t see threat of a global recession triggered by multiple US tariffs.
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