Dollar and stocks are give a strong boost after Trump-Xi meeting in Japan delivered what the markets expected. For now, the greenback is trading as the strongest ones while traders are revisiting the chance of Fed cut in July. Canadian Dollar is steadily firm, partly helped by rally resumption in oil price, as WTI breaches 60 handle. Swiss France and Yen are broadly pressured but Euro and Australian Dollar are not far behind. In short, Trump an Xi agreed to stop further escalations in tariffs for the time being. Trump agreed to loosen up the ban on Chinese tech giant Huawei while China agreed to buy large amount of American farm products. Additionally, Trump surprised the world by being the first sitting US president to visit the Demilitarized Zone between the two Koreas and met North Korean leader Kim Jong-un, for restarting nuclear talks. Technically, while Dollar is strong today, it has yet to take out key near term resistance levels against others. More is needed to confirm bottoming and bullish reversal in the greenback. 1.1317 minor support in EUR/USD, 1.2642 support in GBP/USD, 0.9854 resistance in USD/CHF and 108.80 resistance in USD/JPY need to be taken out firmly, better together, to confirm Dollar strength. In other markets, Nikkei closed up 2.14%. China Shanghai SSE is up 1.97%. Singapore Strait Times is up 1.38%. Hong Kong is on holiday. Japan 10-year JGB yield is up 0.0175 at -0.144. |
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