Markets act as though the trade row is here for the long term

There have been significant moves overnight, with the US dollar losing ground against the Yen and Swiss Franc. But as NAB’s Gavin Friend explains to Phil Dobbie, this is not a traditional risk-off event, because EM currencies, including the Aussie dollar, have not been pulled down with it. The reason, it seems, is because there’s a growing expectation that a trade deal won’t be reached with China. Bond yields have also fallen markedly with the growing realisation that low inflation growth isn’t as transitory as Jerome Powell would have you believe.

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