USD weakness in focus this week – dbs

The weakness of the USD will probably be a key issue at the Meeting of Finance Ministers and Governors of Central Banks of the G20 on April 23 and 24 in Washington DC, which will be part of the FMI spring meetings and the World Bank. The Trump administration will carry out high level conversations with Japan and South Korea, which will probably include discussions about the weakness of the JPY and KRW. Both countries will probably oppose the manipulation of perceived currencies; Japanese Prime Minister Shigeru Ihiba was more vocal in emphasizing equity in currency discussions.

The Fuert EUR presses the ECB while the DXY wobbles before the G20

“Japan and South Korea are navigating a careful diplomatic line, offering incremental concessions to reduce or eliminate US tariffs on their imports without capitulating all US demands Geopolitics and economic between the US and China.

“Although the IMF does not anticipate a global recession, it will degrade its global growth forecasts and warn that the prolonged commercial tensions led by the US and the political uncertainties could lead to tensions in the financial markets, undermine investors’ confidence and raise challenges to financial stability. Despite the darkest global economic panorama from the global financial crisis, the countries are divided In this week’s meetings. ”

“The destination of the DXY index depends on its most significant component: the EUR. Having appreciated 10.5% so far this year up to 1,1440 this morning, the EUR/USD faces important resistance about 1.15. The European Central Bank recognized the risks that a strong EUR proposes for inflation and growth. The eurozone economy faces significant risks of a possible commercial war with eclipse the increase in infrastructure and defense spending of the ‘Readiness 2030’ plan. “