FX Update: CAD adds to JPY wobbles against USD
The US dollar has notched higher in the wake of the US President Trump move against Chinese social media companies and a snag in the everything-must-go-up trade. US Congress was unable to reach agreement on new stimulus measures in the latest round of negotiations, but Trump seems ready to move unilaterally with executive action. Some focus on EM as we head into the weekend, the ruble in particular.
Market Quick Take - August 7, 2020
Equity futures pulled back sharply late yesterday after aggressive new highs in the US trading session after US President Trump banned TikTok and WeChat for use by individuals or companies in the US, to go in effect in September. In Asia, mainland Chinese chairs suffered a weak session, led by WeChat owner Tencent, while risk aversion elsewhere was modest.
FX Update: USD pulls back from new lows. TRY tailspin.
The US dollar weakened to new cycle lows this morning, only to perk up suddenly in what could be a sign of a tactical setback for USD bears, though too early to draw conclusions. In Turkey, the USDTRY spot rate accelerated to the upside to a new all-time high and other EM currencies were under a bit of strain, a possible source of the USD support here.