Currency markets go risk-on amid trade war, Brexit optimism

• The dollar fell 0.6% on Friday, with global risk appetite boosted by the apparent clearing of two clouds that have been hanging over world markets: U.S.-China tariffs due on Dec. 15 and Britain’s election.
• Currency traders expect the U.S.-China trade war to de-escalate after U.S. sources said Washington had set out its terms for a trade deal.
• UK Prime Minister Boris Johnson’s pro-Brexit Conservative party won a majority, which markets expect will fulfill Johnson’s promises to end the uncertainty around the UK’s departure from the EU.
• The Japanese yen, which fell when early indications of the UK election result were announced on Thursday evening, continued to slide on Friday. It was last down 0.3%, heading towards its lowest against the dollar in more than six months JPY=EBS.
• The dollar index. DXY was down 0.6%, its biggest daily fall in six months.

(Source: Reuters)