By XE Market Analysis
The Dollar traded mostly softer against most of the main currencies, while many emerging market currencies manged to hold their ground today following recent pronounced declines. Amid this was a subtheme of a generally softer Euro, although ranges were limited. Market participants are facing a slew of U.S. data releases due today and tomorrow, highlighted by tomorrow's August employment report, while keeping a weather eye on Canada-U.S. trade discussions and the possibility for an embattled President Trump to raise tariffs on a further $200 bln of Chinese imports after the public consultation period ends at midnight today. China pre-emptively threated reciprocal tariff retaliation should the U.S. make good on its threat (Trump said yesterday that the stage for agreement has not yet been reached, but that talks would continue). EUR-USD turned lower, back to the lower 1.1600s after posting a six-day high at 1.1659. USD-JPY and more especially Yen crosses softened. USD-JPY dipped to a low of 111.17, down from a peak at 111.75, and subsequently settling above 111.30. The biggest mover, once again, has been the AUD-JPY cross, which lost nearly 0.5% in making a 79.81 low and returning focus on the 22-month low that was seen on Monday at 79.52. EUR-SEK rallied after the Riksbank pushed back its rate hike call to December or February from October or December indicated previously. The cross rallied to a three-day peak at 10.6087.
