16/ 05/ 2019

Euro Steadies against Dollar on speculation of Auto-Tariffs Delay

Euro bounces on expectations that U.S. President Donald Trump will delay implementing tariffs on imported cars. Trump administration officials told Reuters on Wednesday that the president is expected to put off a decision on imposing tariffs on imported cars and parts by up to six months, for now preventing a further increase in transatlantic trade tensions. The euro was higher, having bounced overnight from a one-week low. The single currency was initially hit as Italy’s Deputy Prime Minister Matteo Salvini criticized European Union rules for the second day.

Today the markets will remain calm due to lackluster of top-tier economic data and the focus will be around the geo-political tensions seeming up.

15/ 05/ 2019

Dollar Steadies against Rivals while market cues in for US Data

The dollar held steady while the Australian dollar hovered near a more than four-month low today, as trader’s awaited European and U.S. data for clues on whether the worst is over for the global economy. The foreign exchange market showed little reaction to worse-than-expected growth in Chinese industrial output and retail sales for April that underlined the need for Beijing to roll out more stimulus measures to support the world’s second-largest economy.

The dollar was supported as trade issues remained foremost on investors’ minds after U.S. President Donald Trump on tuesday insisted that trade talks with China had not collapsed.

Today’s market focus will be around US Housing Starts & Initial Jobless Claims which will be a key indicators of their current housing sector growth & job sector.

14/ 05/ 2019

US-China Trade War Intensifies as China Retaliates

Euro & sterling pound declined against the U.S. dollar on Monday, as investors adopted a wait-and-see approach as they tracked developments in U.S.-China trade war. 

Earlier today, as broader sentiment stabilized after U.S. President Donald Trump said he expected Sino-U.S. trade negotiations to be successful. Trump said earlier he would meet with Chinese President Xi Jinping at a G20 summit next month. China had announced yesterday that it would impose higher tariffs on $60 billion of U.S. goods following Washington’s decision last week to hike its own levies on $200 billion in Chinese imports.

The negotiations just reached a point that both sides have to admit the differences in principles. New tariffs had took effect and more are coming. It’s clear that there is no quick fix to US-China trade tensions, going to drag on with no end in sight.

Attentions will turn back to economic data this week. There is some top-tier data to be released for major currencies today, such as German ZEW economic sentiment will be watched for more sign of stabilization in Eurozone slowdown. UK will release job data but might be shrugged off like others as Brexit remains the key risk. 

13/ 05/ 2019

Week Ahead | Markets Embrace for Busy Data week & Brexit Concerns Weighs in on Sterling Pound

The crisis in trade talks weighed heavily on markets, helping the USD and the JPY, but the moves were not even. US-China trade war was the center of global focus last week. Situation became worse as Liu’s visit ended with nothing but declaration that there were still substantial differences between the two sides. Trade war will likely drag on which should weigh on global market sentiments.  Across the US Arena, inflation expectations increased, the FED had projected two rate hikes until the end of 2019. But as the economy weakened it retraced the move. Hence, the actual inflation would decide the next move. President Donald Trump on Saturday called for China to act now on trade or risk facing a worse deal if negotiations continue into a possible second term after the 2020 presidential election. Over the week, Yen ended as the strongest one.

The British pound was little changed on Friday after data showed the UK economy got a boost ahead of a Brexit that never came, with traders doubtful Prime Minister Theresa May can reach a deal with the opposition on how to leave the European Union. Economic data has taken a backseat in determining the direction of the pound as prolonged Brexit negotiations dominate trading. The Euro has moved to a new session high after the softer CPI data was released last week.

It’s going to be another choppy week ahead. Chatter on trade, Brexit and the stats will influence risk appetite.