Currencies not too phased by US-China trade reports for now

Together with positive credit data in China on Friday, weekend news helped gain Asian assets. However, currencies and government securities do not react in the same light, with risky currencies and the yen having only a minor change for the moment - besides the kiwi - while yields on government securities actually register a decline with the start of European trade.

Among all this, the most important thing is perhaps the pact to stop currency manipulation. However, I remain of the opinion that these news should be heard from Chinese sources, not only by Mnuchin.

Until both parties start to communicate the same message, we remain skeptical about actual progress. With the day's economic calendar remaining relatively empty, markets are likely to continue with the risk-on sentiment on Friday.

With the start of the corporate season, traders will have another factor in computing their trading strategies for the coming weeks. Given that the S & P 500 has registered an increase of about 15% this year, Wall Street will want to see clear signs that growth will rise in the coming quarters. And if these evidences do not materialize, the markets suffered.

Read more:

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