Risk tilting off
Risk is tilted off with some safe haven moves and a lower European equity market at the cash open.
So where are we at?
1- US and China want to have a phase 1 trade deal down on paper by the end of next week
2 – The US plan to roll back the China tariffs face fierce internal opposition (not a surprise)
This uncertainty is weighing on the markets again – will they or won’t they get the deal done or will one party pull out last minute? It’s not hard to see the tentativeness in the market. So, what’s the trade? Wait for the sentiment shift (probably won’t happen now until the President is up (1300GMT wish). Otherwise wait for CAD employment data out later.