11/ 07/ 2018

U.S. threatens new tariffs on Chinese goods will this derail the Dollar on a Long term

Early Wednesday, the financial markets are showing signs of safe haven buying and the liquidation of higher risk assets amid speculation that President Trump is poised to bring the U.S. closer to a full-fledged trade war with China by announcing another round of tariffs against Beijing.

President Trump is preparing to release another list of an additional $200 billion in Chinese products to be hit with a fresh round of tariffs, according to two people familiar with the matter.

Additionally, the U.S. is currently considering levying duties on a further $16 billion in Chinese goods, after a public hearing later this month. China has vowed to retaliate dollar-for-dollar to any further U.S. tariffs.

10/ 07/ 2018

Brexit turmoil infuses a fresh bout of volatility across the board!

Boris Johnson’s resignation an unexpected turn in the UK Political arena since Boris was a strong influencer of the Brexit Referendum. Theresa May’s support over the UK Parliament was short lived with this decision from Boris Johnson. Market reacted on a temporary basis and returned back to normal once the US Markets opened.

Fed Member, Kaskari comments on the US Fed Interest Rate decisions along with last week Friday’s data showed average U.S Hourly earnings gained in June suggested a moderate inflation pressure. Resulting in four Interest rate in 2018.

09/ 07/ 2018

Week Ahead | Trump, Trade and Monetary Policy in the Spotlight

The first week of Q3 opened with a resumption of the US Dollar’s strength, but it found itself retreating later on. US data remained upbeat, supporting the US Dollar. More importantly, the greenback enjoyed safe-haven flows related to the growing concerns about trade wars. The political crisis in Germany dominated the headlines early in the week but was quickly resolved, allowing some relief for the euro. In the UK, the government continued struggling to decide on its approach while negotiations with the EU remained stuck. The market mood improved later on as the US tariffs on China came into effect without any fanfare. In addition, German Chancellor Merkel opened the door to reducing EU tariffs on cars as a move meant to ease tensions with the US. The euro liked it and it had a positive effect beyond the common currency. The FOMC Meeting Minutes showed optimism about the US economy but also warned on trade, in an overall dovish document.

It’s another busy week ahead and U.S President Trump will likely find himself in the middle of it all again, with trade wars also likely to influence central bank forward guidance.