Even though both the US and China are optimistic of a possible deal, Trump’s tweet left the market confused. It would be safer to stay on the sidelines.
Until the EU accepts the deal, we believe that it may be too early to buy into pound.
New Zealand dollar rose after RBNZ highlights no significant change in monetary policy outlook. With further easing not likely to happen, NZD/USD could rise higher.
German PMI fell to a decade low at 41.4, confirming doubts that Germany is tipping into a recession. EUR/NZD could head lower towards the 1.7300 price level.
Trump said on Twitter today that the US will delay a tariff increase of USD$250 billion on Chinese imports that was to take effect 1 October. Long AUD/JPY?