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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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FX Brief NFP and Trump EU trade speech eyed

Article By: ,  Financial Analyst
August 2, 2019 9:12 AM

  • FX update: Safe-haven JPY has remained the strongest major currency for the second day after President Donald Trump shocked the markets with a series of tweets that the US would impose 10% tariffs on $300 billion of Chinese goods that are not currently taxed. As a result, the safe haven yen was the strongest major currency on the day and the risk-sensitive Aussie was the weakest. The Dollar Index, which hit a new 2019 high before selling off yesterday, is lower again as investors wonder whether the escalation in US-China trade dispute may increase the odds for further Fed rate cuts after the central bank opted for a hawkish cut of 25 basis points in mid-week.
  • Stocks continue to struggle amid trade concerns while crude oil has managed to rebound after taking a nosedive the day before. Gold remains underpinned ahead of US jobs report.
  • Up next: The focus is turning to US jobs data, due for publication at 13:30 BST (08:30 ET). See our NFP report preview article. Then Trump will speak at 18:45 (13:45 ET) on Trade with European Union, in Washington DC. Will he announce EU auto tariffs?
  • Data recap: Beating expectations were retail sales from Australia (+0.4% m/m vs. +0.3% expected), Italy (1.9% m/m vs. 0.4%) and Eurozone (+1.1% m/m vs. +0.3%), while UK construction PMI (45.3 vs. 46.0), Swiss CPI (-0.5% vs. -0.4%) and Spanish Unemployment Change (-4.3K vs. -21.4K) all disappointed.

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