The US dollar was little changed for most of last week and then weakened against most of the major currencies ahead of the weekend. The consensus narrative is that comments by the US Administration fanned optimism on a trade agreement with China, and that encouraged a rally in risk assets. We are skeptical, in part …
Overview: The US dollar is firmer against most of the major currencies. Japanese and Indian markets were closed for holidays and a weaker than expected flash EMU PMI helped keep the euro pinned near this week’s lows. Although the EU seemed to thrown UK’s embattled May a lifeline with some compromise wording in a draft declaration, …
One would not have a clue looking at global equities that there has been a sharp escalation in trade tensions in the past 36 hours. As was well tipped the US imposed a 10% tariff on $200 bln of Chinese goods and indicated that the tariff will rise to 25% at the start of next …
Dollar Trades Heavily as Emerging Markets Follow China Read More »
After correcting lower since the middle of last week, and pushed faster if not further by President Trump’s comments, the US dollar is rebounding against most of the major and emerging market currencies today. After an initial wobble on the back of the FOMC minutes, the greenback’s recovery began in earnest. The minutes confirmed the …