EUR/USD 1.12470
-0.475%
Gold 3327.12
-1.110%
Oil 59.604
3.337%
USD/JPY 145.475
1.144%
GBP/USD 1.32815
-0.077%
GBP/JPY 193.226
1.105%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
May 8th, as part of the US-UK trade agreement, the United States plans to maintain a 10% basic tariff. US President Trump said in the Oval Office on Thursday that this is not a template for future agreements. "This number is low," he said. "They made a good deal." Trump said that other countries tariff rates may be "much higher" because "they have huge trade surpluses, and in many cases, they dont treat us right." On April 9, Trump suspended "reciprocal" tariffs of up to 50% on dozens of countries for 90 days. For other countries, including the United Kingdom, a 10% base tariff is imposed on all goods entering the United States. Trump said that the 10% tariff rate is not negotiable. But Trumps latest remarks indicate that negotiations with other countries whose reciprocal tariffs have been postponed will not be able to completely cancel these higher tariffs.Tip: US President Trump finished his speech at the White House.American Spirits Association: We hope that the United States and the European Union can continue negotiations to ensure that tariffs on spirits are permanently reduced to zero.On May 8, British Prime Minister Starmer said that the US-UK trade agreement will reduce tariffs on 100,000 British cars per year from 27.5% to 10%. "The agreement will eliminate tariffs on British steel and aluminum, reducing them to zero," and will "provide unprecedented access for British farmers without compromising our high standards," Starmer also said. According to industry data, the UK exported 370 million pounds ($492 million) worth of steel to the United States last year, accounting for 9% of the UKs total steel exports. Speaking at the Jaguar Land Rover factory, Starmer added: "We are sending a message to the world that the UK is open for business: seeking a trade agreement with India on Tuesday, seeking a trade agreement with the United States today, and working to promote trade with other partners, including of course the European Union." Starmer defended the relationship he has established with President Trump. "In recent years, there has been a view that sometimes you show your strength by rejecting your allies," he said. "There are many people who urge me to do this...but this is not the way this government works."UK two-year gilt yields rose to their highest level since April 2023 at 3.93%.

The release of Fed Minutes has resulted in a decline in interest rates, sending the US Dollar Index down to 106.50

Alina Haynes

Aug 18, 2022 11:20

 截屏2022-08-18 上午10.04.08.png

 

In an effort to consolidate weekly gains, the US Dollar Index (DXY) is trading near its intraday low of 106.50 again during Thursday's Asian session. On Monday and Wednesday, the value of the greenback rose sharply due to recession worries and higher interest rates, but dropped again after the release of the Fed Minutes.

 

According to Reuters's analysis of minutes from the current Federal Open Market Committee (FOMC), officials indicated a willingness to decrease the pace of interest rate hikes in response to signs of a slowdown in inflation. Fed members said in the minutes from their July meeting, which were posted on Wednesday, that the pace of future rate hikes would depend on new economic data and evaluations of how the economy was adapting to the rate hikes that had already been approved.

 

At press time, the yield on the 10-year US Treasury note had dropped one basis point (bp) from its prior week's high near 2.90 percent after the release of the Fed Minutes.

 

Expectations of further stimulus from China also looked to have reduced demand for safe havens, which put downward pressure on US bond rates alongside the FOMC Minutes. China may issue an additional 1.5 trillion yuan in debt as part of an investment push, according to china securities news. However, risk aversion appears to remain on the table due to concerns over China's ability to overcome fears of a recession, especially in the wake of the covid issues and hot wave.

 

New statements from the Office of the United States Trade Representative suggest that formal negotiations between the United States and Taiwan may begin on a trade initiative in early fall of this year, which may exacerbate existing concerns.

 

Prior to the announcement of the US Retail Sales report for July, bond coupons rose. U.S. retail sales increased by 0.0% in July, missing the 0.1% mark economists had predicted and revising down the 0.8% gain seen in June. However, the Retail Sales Control Group estimates improved, going from 0.6% (the market consensus) to 0.8% (the updated figure).

 

Fed Governor Michelle Bowman made a similar point, saying "High inflation and robust employment will undoubtedly exert some pressure on the labor and employment markets."

 

In August, DXY traders may find entertainment in the weekly announcements of US Initial Jobless Claims and Philadelphia Fed Manufacturing Survey. The most crucial things to keep an eye on for fresh impetus are recession worries and Fed worries.

 

DXY bears are being encouraged to retest the 106.20 21-day moving average (DMA) support by the formation of a double top near 106.95.


Suggestion