XE Market Analysis: Europe – Sep 07, 2018

The Dollar majors have been mostly steady, though USD-JPY drifted to 16-day lows under 110.50 on safe haven demand for the Japanese currency while the Australian Dollar underperformed due to Australia’s exposure to China, which looks set to find the U.S. hiking tariff rates on another $200 bln worth of its exports. Obstacles remain in the Canada-U.S. trade negotiation, too, while President Trump is reportedly considering tariffs on Japan. Emerging market currencies are in a state of reprieve for a second day, though a sense of fragility persists that could be exacerbated by a strong U.S.