FX Update: Risk rally reversing on trade deal uncertainty
The USD and especially JPY firmed and AUD deflated after it became clear already on Friday that the US-China trade deal is not proceeding according to market assumptions, though softening risk appetite to start this week in the Asian session appears a bit of a delayed reaction. A move back to more uncertainty after recent wild complacency seems the path of least resistance.
FX Chart Highlights: USD bears are running for cover to end the week
The US dollar has rallied all week after closing last week on a low note, making life miserable for USD bears caught looking for a breakdown. Still, there is a bit more wood for the USD to chop before it achieves the status of a full reversal. The commodity dollars are under the most pressure today against the greenback.