 Dollar opened the week mildly lower but appears to have found some footing in early European session. Trump is fighting trade wars on two fronts, at least. On the one hand, China has cleared stated its position for not backing down on some core issues, with a white paper released on Sunday. So, there is little chance for a breakthrough in US-China trade negotiation for the near term. And it's even doubtful on whether Trump and Xi will meet at the G20 summit in Japan later in the month. On the other hand, Mexican officials will be in Washington this week. Comments so far suggested that Mexico is open to work with the US on measures to curb immigration flow through the country to US. However, the main problem is that Trump will only drop the tariffs threats if Mexico could meet his demands, which are so far quite arbitrary. And, as Trump tweeted, "Mexico is sending a big delegation to talk about the Border. Problem is, they've been "talking" for 25 years. We want action, not talk." So it's unsure how Mexico's good faith would be responded to. In the currency markets, at the time of writing, Yen is the weakest one for today, followed by Sterling. Swiss Franc is the strongest one, followed by Australian Dollar. Much volatility is envisaged ahead with heavy weight data from US, RBA and ECB, as well as import data from UK, Eurozone, Canada and Australia. In Asia, Nikkei closed down -0.92%. Hong Kong HSI is down -0.11%. China Shanghai SSE is down -0.36%. Singapore Strait Times is up 0.02%. Japan 10-year JGB yield is up 0.0073 at -0.0089. |
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