Dollar stays generally soft in quiet markets but selling seems to have slowed in early US session. Trump criticizes Fed as sticking like a "stubborn child" on interest rates. Such comments are ignored by markets, sensibly, in general. The key to Fed's policy is whether Trump is able to make an agreement with China to resume trade negotiations this week. Or he'd fail again. Then there will be economic data to show how the economy are suffering from his own trade policies, starting from durables and PCE inflation this week, then ISMs and NFP next. Staying in the currency markets, Sterling is currently the weakest one for today, followed by Yen and then Dollar. Australian Dollar leads commodity currencies higher. Euro is mixed after German Ifo business climate dropped to lowest since November 2014, without serious deterioration. Other markets are generally steady, except that German DAX tumbles today together with 10-year bund yield. Mercedes-Benz maker Daimler leads the decline with 3% fall after it cuts 2019 earnings outlook on Sunday. 10-year bund yield hit as low as -0.314, not far from-0.326 record low. In Europe, currently, FTSE is up 0.12%. DAX is down -0.45%. CAC is down -0.08%. German 10-year bund yield is down -0.0212 at -0.303. Earlier in Asia, Nikkei rose 0.13%. Hong Kong HSI rose 0.14%. China Shanghai SSE rose 0.21%. Singapore Strait Times dropped -0.30%. Japan 10-year JGB yield rose 0.0155 to -0.152. |
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