Asian equities are broadly higher as markets hope for progress in trade talks between the USA and China today, as we are one month from the final US tariff deadline.
Asian equities are broadly higher today, as markets look for positive signs from the talks on reducing tariffs between the USA and China which will happening today. A successful deal could be very positive for both the US and Chinese economies and therefore stock markets.
In the Forex market, one of the most notable developments has been the decline in the US Dollar since the market opened a few years ago. The price is now approaching the multi-year supportive floor at 97.67. If we see a breakdown below that level, this could trigger a much stronger fall in the greenback. Currency pairs to watch in this case are the
GBP/USDand to a lesser extent
EUR/USD. Since today's Tokyo open, the New Zealand Dollar has been the strongest major currency, while the Swiss Franc has been the weakest. This suggests a risk-on atmosphere is dominant.
The CME FedWatch tool shows no consensus expectation of a rate cut by the Fed before the September meeting. Markets are expecting annualized US CPI (inflation) data to rise this Wednesday from 2.3% to 2.5%.
- Silver
reached a new 13-year high last week, although it sold off a bit on Friday. The precious metal Palladium is trading at a 6-month high but is showing much more subdued long-term bullish momentum. Trend traders will be interested in being long of Silver right now.
It is a public holiday today in Switzerland, France, and Germany.