Entering into US session, Dollar continues to be under broad selling pressure. Expectation that Fed is unlikely to raise interest rate again this year, with some chance of even a cut towards the year end, is weighing down on the greenback. Today’s ISM services and Wednesday’s FOMC minutes are unlikely to alter such speculations. Dollar will instead look into Friday’s CPI release for rescue.
Canadian Dollar follows as the second weakest even though WTI crude oil is still extend near term rebound. Yen is the third weakest as corrective pull back continues. On the other hand, Swiss Franc is the strongest one for today so far. Euro is ignoring deterioration in investor confidence and follows as second strongest. New Zealand Dollar is the third best performer for now.
In European markets, at the time of writing:
- FTSE is down -0.49%
- DAX is down -0.50%
- CAC is down -0.51%
- German 10 year bund yield is down -0.010 at 0.201
Earlier in Asia:
- Nikkei rose 2.44% to 20038.97, reclaimed 20k handle
- Singapore Strait Times rose 1.42%
- But Hong Kong HSI rose 0.82% only
- China Shanghai SSE rose 0.72%
Chinese investors are cautious as US-China trade negotiation resumed in Beijing today. It’s originally arranged as a vice ministerial level meeting. But Vice Premier Liu He, Xi’s top official on trade, surprisingly attended the meeting too. Liu’s participation is seen by some that China is putting much effort to make a deal.
