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Speaking in an interview with Fox News,  White House trade advisor, Peter Navarro, said that a Fed cut will make the economy stronger and that the Fed raised rates to fast.  

Further comments:

  • We have seen no inflation.  
  • China is burdening the burden of tariffs.  

More to come…

FX implications:  

A Federal Reserve rate cut is already priced into the markets, so the baring is really on trade sentiment. at this stage, the markets are predicting a protracted trade dispute between China and the US and this is supporting the flows into the CHF and JPY, and to some the Dollar as well.