Entering into US session, the forex markets are relatively calm today with major pairs and crosses are back inside Thursday’s ranges. Though, risk aversion is clearly seen in other markets. Worries over US-China trade tension escalation resurfaced after Trump said he will not meeting Chinese President Xi this month. This came despite Trump’s schedule to meet North Korean leader Kim Jong-Un on February 27-28 in Vietnam, just next to China. Re-escalation in trade tension would drag on the already weakened global recovery.

For today so far, Australian Dollar is the weakest one after dovish RBA economic projections. But there is no follow through selling yet. Dollar also weakens mildly as it’s paring this week’s gain. Sterling is the strongest one, followed by Swiss France. Both are consolidating this week’s moves. Canadian Dollar is also steady but some volatility is envisaged after job data release.

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For the week, Dollar is overwhelmingly the strongest one, followed by Yen and then Swiss Franc. Commodity currencies are the weakest, led by Aussie.

In other markets:

  • DOW futures are down more than -100 pts right now.
  • FTSE is down -0.25%.
  • DAX is down -0.51%.
  • CAC is down -0.25%.
  • German 10-year yield is down -0.0149 at 0.102. Decline in German yield is quite serious this week.

Earlier in Asia:

  • Nikkei closed down -2.01%.
  • Hong Kong HSI dropped -0.16%.
  • Singapore Strait Times rose 0.04%.
  • Japan 10-year JGB yield dropped -0.0185 to 0.027.

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