Entering into US session, Yen and Dollar remain the weakest ones in the currency markets. Selloff in the Dollar slows a little bit but there is no sign of bottoming yet. Swiss Franc is currently trading as the strongest one, followed by Euro. It seems Euro is rather troubled by Trump’s wide of the mark accusation that it’s manipulated. Though, it’s also helped by narrowing German-Italian yield spread. Chinese delegation will arrive in Washington today to resume trade talks with the US tomorrow. But expectation on that is rather low.
Instead, Dollar could look into Jackson Hole symposium for some inspirations to regain strengthened We find two areas where “expansive money” Fed chair Jerome Powell’s comments might trigger volatility. That is, will there be early end of balance sheet reduction. And, will Fed return to pre-crisis channel system monetary policy? More in this report. Jackson Hole Symposium Preview: Two Questions on Fed’s Monetary Policy.
In other markets, Gold rides on Dollar selloff to as high as 1196.37 so far today. But as selling slows, there is not enough momentum to put it through 1200 yet. European stocks are mixed today, with FTSE trading down -0.12% at the time of writing. But CAC is up 0.74% and DAX is up 0.63%. Italian 10 year yield drops -0.097 to 2.939. German 10 year bund yield rose 0.020 to 0.326. German-Italian yield spread is narrowing back, which is a positive sign. Asian markets were generally positive today. Nikkei ended up 0.09%, Hong Kong HSI rose 0.56%, China Shanghai SSE gained 1.31%, Singapore Strait Times dropped -0.15%.
The economic calendar continues to be light today with Canada wholesale sales as the only feature in US session.