Entering into US session, Australian Dollar remains the strongest one for today on optimism that there would be break through in US-China relationship that would avert full-blown trade war. Swiss franc, though, overtook New Zealand’s position as the second strongest. As the financial markets are enjoying strong risk appetite, in particular in Asia, Yen is naturally the weakest one. Without support of trade war, Dollar’s selloff intensifies today. Focus will turn to non-farm payroll to be release within less than an hour.
The “positive” telephone call between Trump and Xi was the turning point this week. And both sides appear to sound positive and “nice” after that. US and China are now preparing the meeting of the two presidents as sideline of G20 summit in Argentina on Nov 30 – Dec 1. Ahead of that, it’s also reported that Trump asked his key cabinet secretaries to draw up a potential agreement to sign during the meeting, as cease-fire in escalating trade war. Multiple agencies are believed to be involved in drafting the plan.
In European markets, at the time of writing:
- FTSE is up 0.82%
- DAX is up 1.60%
- CAC is up 1.41%
- German 10 year yield is up 0.032 at 0.433.
- Italian 10 year yield is down -0.076 at 3.304. Spread continued to narrow.
Earlier in Asia:
- Nikkei rose 2.56% to 22423.66
- Hong Kong HSI rose 4.21% to 26486.35
- China Shanghai SSE rose 2.70% to 2676.48
- Singapore Strait Times rose 1.81% to 3116.39.
- USD/CNH is now at 6.8635, comparing to the near term top made yesterday at 6.9871
