Forex Today: calm before successive trade war storm

- Risk aversion that dominated the primary a part of the day suffered a reversion with comments from United States of America President Trump. The dollar recovered, safe-haven assets gave up, and equities additionally bounced. however, Hu Xijin, editor-in-chief of the worldwide Times, tweeted that “based on what i do know, Chinese and United States of America high negotiators did not hold phone talks in recent days. the 2 sides are keeping contact at a technical level, it does not have significance that President Trump advised. China did not modification its position. China will not cave to United States of America pressure,” somehow denying Trump´s words. The market neglected it.



- Britain PM Boris Johnson same that the united kingdom may “easily cope” with a no-deal Brexit, and damned the EU for a attainable no-deal state of affairs. Once again, he same that the “backstop has to come back out,” which the EU must take off with an answer whereas ramping up preparations for a no-deal.

- USD/JPY bounced from a multi-year low of 104.44, however the recovery fell wanting touching the dominant pessimistic trend.

- Commodities shutd the day unchanged when put next to Friday’s close. It appears that the newest risk-related development had left investors uninformed all over again.

- Cryptocurrencies edged marginally higher, trimming early losses. No fireworks there.

Comments

Post a Comment

Popular posts from this blog

Forex Today: Trade wars paint markets in red, Brexit appearance worse, and central banks area unit restricted

Image
- The US-Sino trade war is painting world markets within the red. The North American country greenback is losing some ground to major currencies as yields plunge, whereas it gains against trade goods currencies. Gold is rising and oil is falling. - Chinese Vice Premier and high communicator Liu He immersed calm and same foreign investors area unit welcome. He had President Donald Trump's decision to North American country firms to go away China. The increase began on weekday once China careful its counter-tariffs and Trump proclaimed new levies once markets closed. Trump same he had second thoughts on the levies however the White House later processed that he might regret not slapping a lot of tariffs. - The increase overshadowed Fed Chair Eusebius Sophronius Hieronymus Powell's speech, within which he opened the door to cutting rates once more –but conjointly same hinted that financial policy cannot solve all the issues. - Brexit: The tone has worsened over t
Read more

Forex Today: Volatile Asia amid US-China trade woes; German IFO, Brexit one-eyed

Image
We had a volatile Asian begin, with massive gaps seen across the fx area (as expected) amid the US-China trade war increase. The trade developments on weekday and over the weekend emerged the most market driver and triggered a wave of risk-aversion within the Asian hours, that boosted the demand for the safe-havens: Yen, the Swiss monetary unit and Gold at the expense of the danger assets like oil, equities, Antipodeans and Treasury yields. However, markets witnessed a relaxed towards Asia close/ early European trades, because the bears took a breather amid conciliatory remarks from each the U.S.A. and China whereas contemporary US-Japan trade optimism conjointly helped ease some nerves. Amongst the Asia-pac currencies, USD/JPY enjoyed smart two-way value movements, ab initio touch contemporary multi-year lows close to 104.47 on a pessimistic gap gap. later, the spot spikes to one zero five.78 highs before reversing below the one zero five.50 level. The Antipodeans were the wor
Read more

Forex Today: specialize in Fed's Powell and a bout of Brexit hope

Image
- All eyes ar on Fed Chair St. Jerome Powell. The world's most powerful financial organisation speaks at Jackson Hole and markets ar desirous to understand if the Fed can cut rates in Sep or not. Leading into the event, Fed officers have reiterated their positions – pacifistic or hawkish – reflective the split that was additionally seen within the FOMC Meeting Minutes. - The market mood is calmer earlier than the gathering and as there has been no step-up in trade tensions. United States bond yields ar on the increase. Some analysts aforementioned yields everywhere the planet have fallen too so much.  - Brexit: French President Emmanuel diacritical mark aforementioned that the Irish Backstop is "indispensable" however reluctantly united to listen to the other solutions that Britain prime minister Boris Johnson might return up with. Johnson's visit to Paris followed a heat welcome in Berlin, wherever Chancellor Angela Merkel. within the past, the EU rejected
Read more