Dollar, U.S. yields slide on Fed official rate talk
US President Donald Trump has said he thinks the US could strike a trade deal with China, raising hopes that tensions between the two countries may subside. “I think a deal will be made,” Mr Trump said. “We’ll find out very soon.” Mr Trump has made similar remarks in the past. But this time the comments came after China put forward a new list of issues for negotiation ahead of the G20 summit, which the US President described as a “pretty complete list”. However, he said that several key items were lacking, meaning that the list was still “not acceptable to me yet”. “I think we’ll probably get them too,” he added, speaking to reporters after a bill signing at the White House. Mr Trump has already imposed new import taxes on Chinese products worth about $250bn in annual trade, which has led China to respond in kind. Read More @ https://www.bbc.com/news/business-46242732
WHAT IS THE USD SAYING?
The USD pullback is basically profit taking before the weekends and nothing more – we are expecting more USD rallies ahead as the US economy charges ahead and with President Donald Trump all good wth China Trade deals.
- 7.50am – Japan will release their Trade Balance and is expected to be good.
- 5.00pm – Euro will release their current account and is expected to little or no change.
- 5.00pm – EURO will release their Financial Stability Review – It’s an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into the future of monetary policy. Volatility expected.
- ALL DAY – be cautious for all euro pairs – volatility expected as the EURO-GROUP MEETING STARTS. The Eurogroup coordinates economic policies of the 19 euro area member states, and their initiatives and decisions can have a widespread effect on the Eurozone’s economic health in Brussels.
- 7.00pm – Germany will release their German Buba Monthly report – It contains relevant articles, speeches, statistical tables, and provides detailed analysis of current and future economic conditions from the bank’s viewpoint.
Overall the market will go sideways on Monday unless US – CHINA Trade talks changes the scenario and also the Wild Card “BREXIT” may create a chaos in the market.
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