TALKING POINTS – US DOLLAR, TRUMP, FOMC, YEN, STOCKS, BREXIT, BRITISH POUND
- US Dollar retreat amplified by feedback from President Trump
- Pre-positioning for FOMC minutes may encourage USD restoration
- British Pound in danger as EU’s Barnier, UK’s Raab talk about Brexit
The US Dollar weakened in Asia Pacific commerce following one other verbal intervention from President Trump. He bemoaned the Fed’s rate of interest hikes and mentioned he’ll criticize the central financial institution if it continues to tighten. This follows studies that expressed disappointment with Jerome Powell at a gathering with donors Friday, saying he’d hoped for a “cheap-money Fed chairman”.
The Japanese Yen additionally declined as most regional shares rose, sapping the enchantment of the perennially anti-risk foreign money. The catch-all MSCI Asia Pacific benchmark index added 0.3 %. Newswires attributed the transfer to hopes for de-escalation within the commerce warfare between the US and China following studies rising final week suggesting that the 2 international locations are back at the negotiating table.
Looking forward, one other quiet day on the European financial information entrance may put markets on the mercy of stray headline circulate. Soundbites from a gathering between UK Brexit Secretary Dominic Raab and prime EU negotiator Michel Barnier may take prime billing. The two sides have struggled to make progress towards a commerce deal. Signs of continued impasse may damage the British Pound.
The buck may additionally discover a lifeline amid pre-positioning for the discharge of minutes from Augusts’ FOMC meeting, due Wednesday. That sit-down resulted in a decidedly hawkish flip in official rhetoric. Speculation about seeing extra of the identical within the Minutes doc may set off preemptive unwinding of short-term bets in opposition to the buck.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All occasions listed in GMT. See the full economic calendar here.
FX TRADING RESOURCES
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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