Markets are in a more defensive mood to start the European morning
Risk sentiment is still on the softer side as Trump fired fresh tariffs at China overnight. Asian equities are lower and European equities are expected to follow in the decline later, leaving for a more risk-off mood to begin the session.
The yen and franc are slightly bid following overnight gains as such, with the dollar holding mixed as other major currencies slip in light of more risk averse flows.
The aussie is a bit of an exception today following better-than-expected retail sales data. The headline data may be positive but overall I reckon consumption activity is doing little to pull its weight to lift the Australian economy in Q2.
The kiwi is the laggard as markets stay on the defensive with the pound finding no reprieve as the BOE offering no help whatsoever yesterday. Overnight, we also saw Boris Johnson's working majority get cut to just one after Lib Dems dealt a major blow to the Tory party by winning the Brecon and Radnorshire by-election.
