FX Update: Trade tensions still driving the narrative
Even with threats that China is set to announce retaliatory measures, the market is trying to maintain calm, hoping a Trump-Xi call will help. Still our measures of Global risk suggest strains are near their recent worst levels for the cycle. EURUSD has reached pivotal level near 1.1100.
Achtung! German GDP & Ugly Europe/China Industrial Data Sends Yields & Stocks Lower
Stocks in Asia join the global rout after US equities were hammered overnight in what was the broadest sell off since February 2018. Global central banks will move to provide additional stimulus but whilst political risk remains ubiquitous and the trade war uncertainty remains central banks can only manage downside risks, not pivot the economic cycle.