FX Update: The Dollar majors have mostly held narrow ranges
FX Update: The Dollar majors have mostly held narrow ranges amid a backdrop of coursing in global markets. One exception has been AUD-USD, which dove to a five-week low at 0.7060 after the RBA shaved growth forecasts in its quarterly Statement on Monetary Policy. This follows yesterday's trimming of GDP forecasts by both the European Commission and BoE, for the Eurozone and UK economies, respectively, which have collectively added fuel to the global slowdown narrative. U.S. President Trump also said that he did not plan to meet with Xi before the March 1 deadline set by the U.S. and China to achieve a trade deal. No doubt a ploy to up the ante, with the U.S. having pledged to significantly hike tariffs on Chinese imports on March 2, but markets are skittish as the two sides seem to remain a long way apart on the issue of intellectual property, the issue that next week's talks in Beijing will be attempting to bridge. Despite a bearish course in stock markets in Asia, the safe-haven theme has so far largely been absent in forex markets. The Yen has held steady versus the Dollar and other currencies, although AUD-JPY carved out a four-week low at 77.44. USD-JPY has held a narrow range in the upper 109.0s. EUR-USD has also been plying a narrow range, in the mid 1.1300s. The safe haven theme has been more evident in other markets. German and Japanese debt yields falling to their lowest in over two years, with the 20-year JGB yield falling to a 27-month low. MSCI’s Asia-Pacific index was down 0.5%, and S&P 500 futures off by 0.4%, while WTI oil futures are down 1%.