WORLD
High-level officials from the world’s two largest economies, U.S. and China, are scheduled to meet in Beijing on Thursday and Friday to smooth over their trade differences escalated in recent months with both sides threatening to impose reciprocal additional tariffs on each other’s products.
Trump has threatened tariffs on up to $150 billion worth of Chinese goods to punish China over its joint-venture requirements and other policies that USTR says forces American companies to surrender their intellectual properties to state-backed Chinese competitors. China, which denies it coerces such technology transfers, has threatened retaliation in equal measure, including tariffs on U.S. soybeans and aircraft.
MARKETS
Dollar traded near a four-month peak against a basket of six major currencies as investors eagerly await the U.S. central bank’s upcoming policy decision for hints on the future pace of U.S. restrictive monetary policy. FED is expected to keep interest rates on hold. Greenback was trading at 109.76 against the yen, slightly lower than yesterday.
The benchmark U.S. 10-year Treasury yield remained unchanged at 2.979 percent following last week four-year high of 3.035 percent as bond prices fell due to worries about the growing supply of government debt and inflationary pressures from rising oil prices.
The euro inched up 0.1 percent to $1.2002. On Tuesday, the common currency had touched a low of $1.1981, its weakest level since Jan. 11. Weak Euro-Zone GDP to Keep EUR at risk of further losses and support decline in EURUSD.
Sterling remained close to 3-1/2month lows on Wednesday after Brexit-related news hit the pound. Expectations of a Bank of England rate rise have fallen sharply in recent weeks as the data were weaker than expected making the case for immediate tightening of monetary policy much harder.
The US Dollar sank to an 11-month low of $0.74725 in overnight trade and last held at $0.7504 boosted by China’s performance.
Over the last five trading days the weakest FX players were Sterling Pound, New Zealand Dollar and the Swiss Franc.
Oil prices rise on Wednesday, ahead of weekly US supply report; further, oil prices are supported by worries about further sanctions against major exporter Iran, although rising U.S. supplies capped gains.
Gold prices rise, following a four-month low in the previous session, in view of the upcoming Fed Meeting later today while silver gained 1.20% to $16.320 a troy ounce.
Sources: Reuters, Investing.com, Bloomberg
PLEASE NOTE The information above is not investment advice.