The dollar dropped on Thursday after U.S president Trump called off the historic June 12 summit in Singapore with North Korean leader Kim Jong Un, the meeting would have been its first face-to-face between the two. In Trumps letter addressed to “His Excellency” he wrote “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting”. Adding “Your talk of nuclear capabilities, but ours are so massive and powerful that I pray to God they will never have to be used”.
The meeting cancellation grabbed the headlines but the China trade war is also getting some attention; the “risk off” nature of trading was further compounded yesterday morning as President Trump announced he was opening an investigation on U.S. auto tariffs.
In other news yesterday US data including Existing Home Sales and Unemployment Claims printed weaker than expected. Investors will now be looking to today’s Durable Goods Orders but there’s a chance, given various political rhetoric that the data takes a bit of a back seat.