Global Themes

The U.S. dollar was mildly weaker Friday though moves were limited with players hesitant to stake major bets after the U.S. instituted tariffs on some Chinese goods and ahead of America’s monthly jobs report. The euro held on to a three-week high, supported by heartening data on the bloc’s biggest economy, Germany. The yen, sterling and Canadian dollar were largely flat. Emerging markets were generally weaker, reflecting underlying unease after U.S. tariffs on $34 billion worth of Chinese exports to the U.S. took effect just after midnight ET. While the move could prove the opening salvo in a trade war between the world’s two biggest economies, markets have so far taken the news in stride given how it well choreographed ahead of time. Meanwhile, confidence in the shape of the world economy could brighten if America today issues another strong employment report which is on the cards. 

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