By XE Market Analysis
The Dollar has held steady versus the Yen while losing ground to a broadly firmer Euro, inspired by a rally in Italian assets on welcome signs of budgetary prudence on the part of the Italian government. EUR-USD rallied out of a three-week low at 1.1526 that was seen in early London trading to the upper 1.1500s. The biggest gainer out of the Euro crosses has been EUR-CHF, which is up by over 0.5%, reflecting of an unwind in the Swiss Franc's safe haven premium. EUR-USD still remains below the levels around 1.1615-20 that were prevailing ahead of Friday's U.S. jobs report release. Cable logged an intraday high of 1.2955, tracking EUR-USD upward. UK trade, production and GDP data were a mixed bag relative to expectations. USD-JPY held in a narrow range around 111.0, a level which marks the midway of the narrow sideways range that's been in play since late July. AUD-USD tested Friday's 37-month lows just under 0.7100 before settled around 0.7120. Market participants are on tenterhooks, waiting on the seemingly inevitable decision from the U.S. to proceed with the already earmarked tariff hikes on $200 bln worth of Chinese imports with President Trump threatening on Friday to go the whole way with tariff hikes on the remaining $267 bln of Chinese imports. Beijing today threatened retaliation.
