After a recent bout of positive sentiment, which pushed equities higher and the US dollar lower, a cloud of concern appears to be approaching. Weak manufacturing data from around the globe yesterday set the tone. This was only worsened by geopolitical concerns around US Democrat Nancy Pelosi’s trip to Taiwan which has clearly angered the Chinese government.
Stock markets snapped a 3-day winning streak in response to the above developments and the greenback remained offered. Both the pound and euro gained good ground against the buck, although sterling was the outperformer which pushed the GBPEUR cross higher.
Overnight the Reserve Bank of Australia has hiked rates 50bps up to 1.85%. The Aussie dollar has fallen sharply since the announcement.
Written by Viv Savani. 7:03am, August 2nd 2022
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