Risk appetite improved yesterday on the news that US-China trade talks are progressing, according to analyst at Danske Bank.
Key Quotes
“A reported phone call between Presidents Donald Trump and Xi Jinping showed that the door is still open for US-China trade talks and has improved prospects of a meeting between Xi and Trump on the side lines of the G20 Summit in Argentina in mid-November. Talks are going ‘nicely’ US President Donald Trump wrote on Twitter, while Chinese state media also reported about constructive discussions.”
“In the FX market, the CNY strengthened while the USD sold off on the news that US-China trade talks are progressing. Besides trade talks, weak US ISM manufacturing data and lower US yields also weighed on the USD which underperformed against all G10 currencies. EUR/USD bounced back above 1.14 after testing a 2018 low at 1.1302.”
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