By Chris Becker
Another interesting week on risk markets capped by a solid selloff in commodities on Friday night as the USD regained its strength. The international trade war is heating up, with the ECB somewhat ahead of the curve with its shock announcement of a defnitive hold in interest rate appreciation for at least 12 months, which took the rug out underneath Euro shortly after the Fed raised its own rates at the midweek FOMC Meeting. Its now a game of other central banks trying to offset the tariff tit-for-tat that seems to be a daily announcement with China hit on Friday by the US and responding in kind. Emerging market currencies have been left in the dust as a result, alongside gold.
US industrial stocks have not been as affected yet by the trade imbroglio or the much higher USD, with the race to sell off US Treasuries in the wake of the Fed’s metal to the pedal on interest rate rises.