Asia FX Handover Tariff Man Pepper Sprays Mexico

Another risk-off session fuelled by growth concerns and trade wars.
Tariff Man (aka Donald Trump) said he’s to place a 5% tariff on Mexican goods from the 10^th June until Mexican immigrants stop crossing the border illegally. The levy would then be increased gradually until the ‘problem’ was solved.
The Mexican peso is within its most bearish session since October. CAD (the FX major’s proxy for MXN) is today’s weakest major and JPY and CHF are the strongest.
China’s manufacturing PMI contracted more than expected at 49.4 (49.9 forecast) and down from 50.1, making it’s the 4^th contraction in 6 months. Another own goal for global growth.
We see a glimmer of light for gold which hit a 2-week high and WTI touched $56 to carve out a new range for oil bears to fade into.
Indices are expected to open lower with futures markets headed south, on the back of Trump’s latest tariffs and weak China PMI data.
China are reported to have a plan in place to limit sales of rare earth materials in place ‘if necessary’.

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