Risk-off sentiment remains from Asian trading, but little change of note
It's been a dud of a session so far as most major currencies have been ranging between 10-20 pips of each other with the market basically hitting the pause button awaiting for China to detail its concrete measures on retaliating against the US.
The only notable mover is the pound, which jumped a little for not much apparent reason - and even then it was a 20 pips move only, not too uncommon in summer time trading. If anything, the surprising thing for me is that we're not seeing further strength in the yen. It has been the go-to haven flow in times of escalated trade tensions and risk-off movement, but this time around the flows have been modest to say the least.
European stocks remain on the back foot and trades near the lows for the day with most major indices down by close to 1% or more now.
But there really isn't anything of note so far in the trading session for currencies. China holds the key to the next move and so far, we're not getting any clues sadly.
The latest comments by the country's foreign ministry failed to offer any insight on the details pertaining to the trade countermeasures and that is not helping to guide trading direction on the session.
