Overnight, risk mood was soured boosting the yen (best performer on the day) and safe haven assets with USD/JPY falling from 111.40 to 110.98. While Chinese stocks did well yesterday, sentiment flipped in European trade as concerns over growth came back to the fore.
The IMF cut its forecast for 2019 global growth from 3.5% to 3.3%, which would be the lowest growth rate since 2009 due to ongoing angst surrounding the state of play in Brexit developments and trade wars. While there has been some positive progress, by the sounds of things at least, between Beijing and the US, attentions have flipped to EU/US tensions.
The US conjured up a plan in retaliation to impose tariffs on European imports. US Pres. Trump tweeted that the EU “has taken advantage of the US on trade for many years. It will soon stop!” The EU said it’s preparing its own retaliatory tariffs against the US over subsidies to Boeing. Subsequently, US stocks were under pressure, sliding from overbought technical levels. US Treasury yields also fell, with the ten-year yield falling from 2.52% to 2.48% and the 2yr yield from 2.36% to 2.33% - (The chances of a Fed rate cut by December, implied by Fed fund futures, climbed from 60% to 70%). As for data, "US job openings fell a hefty 538k in February to 7.087mn, their biggest decline since 2015.
Source : FXstreet