FX Update: The dollar, yen and Swiss franc have softened
FX Update: The dollar, yen and Swiss franc have softened amid a hiatus in the risk-off theme that dominated markets yesterday. Sentiment remains fragile, though. The MSCI Asia-Pacific (ex-Japan) equity index still managed to carve out a fresh four-month low at the intraday low, before recovering a little, with the main Chinese indexes showing fractional gains. The narrow trade-weighted USD index ebbed to an eight-day low at 97.71, extending a quite steep correction from the 24-month high that was pegged at 98.37 yesterday. EUR-USD concurrently lifted to an eight-day high at 1.1205, up from the two-year low seen yesterday at 1.1107. The Canadian dollar found a toehold after its sharp concomitant drop with oil prices yesterday. This aided USD-CAD's ebb back toward the 1.3450 level after printing a high yesterday at 1.3502. WTI crude futures dove over 6.5% yesterday in making a 10-week low at $57.34, and have since lifted to around $58.50, which is still just over 7% down on the week. USD-JPY, after dropping over a big figure over the last two days on safe-have demand for the Japanese currency, settled to a narrow consolidation around the 109.50 mark. President Trump said yesterday that the blacklisting of China's Huawei might be resolved within the framework of a U.S.-China trade deal, though still called the firm "very dangerous." The U.S. Commerce Department also proposed a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies.