Daily Alert – Tuesday 12th May 2020: US-China tensions grow; Saudis make additional supply cuts
Trump said yesterday he was “not happy” with China after the Chinese commented that they may wish to reopen the Phase 1 trade deal. This, and some constraints placed on Australian beef exports to China, are almost certainly China’s response to calls from the west to have an independent inquiry into the source of Covid-19.
Risk sentiment was indecisive. In terms of my watch list, the CAD was weak, as predicted. However, I did not trade it as it was not being propelled by a weakening oil price. Oil did nothing yesterday despite the Saudis making an additional 1 million barrels-per-day supply cut. Further, it was unclear which currency might act as a strong counter-currency against which to sell the CAD.
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