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On August 22, Brazilian President Lula da Silva spoke by phone with US President Donald Trump on August 21, opposing the recent tariffs imposed by the US government on Brazilian goods. Following the call, Lula stated that the US tariffs on Brazil were "not only completely detached from reality, but also based on lies." Lula said that Brazilian and US trade officials would meet to discuss the tariffs. He stated that the US accusations of deforestation and forced labor in Brazil were completely unfounded. According to him, "Trump himself has acknowledged this and has instructed US Trade Representative Greer to contact Brazilian Minister of Development, Industry and Trade Marcio Rosa to finalize the meeting arrangements." On July 15, the Office of the US Trade Representative announced that it would impose a 25% tariff on some Brazilian products, effective July 22. On July 23, the Office of the US Trade Representative further imposed new tariffs of 10% to 12.5% on dozens of countries and regions, including Brazil, citing so-called "forced labor," to replace the expiring global import tariffs. On August 13, the Brazilian government announced that it had initiated procedures under the Economic Reciprocity Act to retaliate against the new tariffs imposed by the US government on Brazilian products.August 22 – According to the Iranian news agency IRNA, Iranian Armed Forces spokesman Akraminia stated: “The geopolitical awakening of the Iranian people is one of the achievements of the recent war, which has made the world more clearly see the sinister nature of the enemy, and the signs of American decline have become more apparent. The United States no longer has international prestige. Iran’s military strategy has shifted from defensive to offensive; any act of aggression will be met with an immediate response, and the scale of the response may well exceed the scale of the aggression itself. We have also seen Saudi Arabia, Turkey, and Pakistan establish a defensive security mechanism independent of the United States. Regardless of how effective this security mechanism may be in the future, as it stands, it demonstrates the decline of the United States’ position in the region and is the first defensive security mechanism in the region without US participation.”August 22 – The 35th International Joint Conference on Artificial Intelligence (ICAI) and the European Conference on Artificial Intelligence (ECAI) concluded on August 21 in Bremen, Germany. Several international experts attending the conference stated that Chinas artificial intelligence has made rapid progress in various fields of research and industrial application in recent years, with areas such as robotics and large language models reaching global leadership. Judging from the paper submissions and research topics at this conference, Chinese research teams have shown significant participation in many sub-fields of artificial intelligence. Professor Calvanese of the Free University of Bolzano, Italy, who was responsible for the conferences academic agenda and paper review, noted that China received the most submissions at this conference, with extensive participation in areas such as machine learning, computer vision, and robotics.On August 22nd, Xiongan New Area held its 2026 100-Day, 10-Million-Job Recruitment Campaign and a special job fair for relocation services. The event focused on core needs such as the relocation and development of businesses and the employment of their accompanying family members, precisely establishing a service platform to address the housing concerns of relocated personnel and promote talent attraction and high-quality development in the New Area. This event extended employment services to neighborhood centers, creating a "doorstep" job-seeking platform. Focusing on key industries and relocation support services in the New Area, it organized over 30 employers, including Sinochem Digital Technology, China Datang Digital Technology, and China Xiongan Group, to recruit talent offline, offering over 600 job openings to meet diverse employment needs. On-site activities included skills demonstrations, job search guidance, and introductions to supporting living services in the New Area.Ontario Premier: Fully supports Carneys tariff retaliation plan.

USD/CHF Consolidates in a Range of 0.9320-0.9350 on Expectations of Rate Reversion to Neutral

Drake Hampton

Apr 08, 2022 09:57

Tips

  • USD/CHF remained stuck around 0.9350 despite a big increase in US Treasury yields.

  • The DXY is aiming for 100.00 as traders increase their expectations for an aggressive rate hike.

  • Russia resigns from the United Nations Human Rights Council.

 

Since Thursday, the USD/CHF pair has been swinging within a narrow band of 0.9318-0.9348 as Federal Reserve (Fed) policymakers have begun prescribing a reversion to neutral rates from ultra-loose monetary policy postures.

 

After commenting on the amount to which the Fed will raise interest rates in future monetary policies, members of the Fed's Monetary Policy Committee (MPC) have changed their focus to calling for a return to neutral policy. The ultra-loose monetary policies and helicopter money used to boost growth following the Covid-19 outbreak have served their purpose, and it would be preferable to return to normal rates and a self-sufficient economy. Atlanta Fed President Raphael Bostic stated on Thursday that while it is quite acceptable for the Fed to move policy closer to neutral, it should go cautiously, according to Reuters.

 

On the Russia-Ukraine front, Russia is expelled from the United Nations (UN) Human Rights Council after its members voted against the Kremlin's war crimes in Bucha, Ukraine. Additionally, US lawmakers have decided to prohibit Moscow from importing oil, gas, and coal. Additionally, the former has opted to revoke its 'Most Favored Nation' trade designation, resulting in higher tariffs for Moscow.

 

Meanwhile, the US dollar index is heading towards the enchanted level of 100.00, fueled by forecasts for better US Consumer Price Index (CPI) data next week. The yield on the 10-year US Treasury note has recaptured a three-year high of 2.66 percent as rate rise worries resurface.

USD/CHF

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