The markets are finishing the week in a more stable tone. The USD is a bit stronger, the future Variable rental of the US recedes after yesterday’s increase and US Treasury bonds are a bit firmer. The mood of the market has improved around the hopes of progress in trade between the US and China, says Shaun Osborne, Strategist of currencies of Scotiabank.
The USD stabilizes while markets expect progress in commerce
“The US administration continues to indicate that the two countries are talking about commerce, but China deny it flatly. Beijing is considering exempting some US products from tariffs in a similar way to the recent decision of the United States. Fed rates in summer also helped raise the feeling of the Variable Income Market after the president of Cleveland’s Fed, Hammack, suggested that the Fed could cut in June if there were data ‘clear and convincing’. “
“The delays that will probably occur before the paralysis in the trade between the US and China becomes more evident in the real economy can mean that June is still too soon for the Fed to act, however. It is reported today that President Trump said he expects commercial agreements in the next ‘3-4 weeks’. Commercial hopes are eternal for the markets, but it is far from being clear that there is a real Moment.
“We believe that the USD is still at risk of weakening even more; the slowest growth and concerns about a recession are a concern, which can eventually manifest through lower interest rates in the US, dragging the USD down. Away from the capital markets of the USA. A correction in a USD still overvalued is a probable long -term result of the desire of the US administration to rebuild global trade.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
