The dollar stings the nose, the Taiwanese dollar fly away

(Boursier.com) – The US dollar stings the nose this Monday, notably in the main Asian currencies. Speculations that certain Asian countries are ready to reassess their currencies to obtain concessions from the Trump administration weigh on the greenback. Despite the denials of Taiwanese officials, the new local currency gains on Monday ( +5.7% after +4.4% on Friday) prompted the governor of the Central Bank Yang Chin-Long to in haste a press conference in which he stressed once again that there had been no negotiations on the exchange rate with the United States.

Donald Trump said on Sunday evening that he did not intend to speak to his Chinese counterpart this week, although he reported that trade agreements with other unpertified partners could be concluded soon. The president also said that he would not try to remove the president of the federal reserve, Jerome Powell, but reiterated his calls to a drop in interest rates and qualified J.Powell as “rigid”.

“The recent cyclical gains of the actions do not change the structural theme of the ‘Sell America’”, told ‘Bloomberg’ Charu Chanana, investment strategist at Saxo Markets in Singapore. “The optimism aroused by trade agreements gives way to the reality of complex and slow negotiations”.

While the season of the first quarter results is now well advanced, attention is now focused on the monetary policy decision of the Federal Reserve on Wednesday evening. The central bank should maintain its interest rates unchanged despite the pressure exerted by Trump and fears of an economic slowdown induced by customs duties. “It will take a few months for enough concrete data to accumulate to justify a drop,” the economists of Goldman Sachs wrote on Sunday. They provide for three consecutive rate drops of 25 base points in July, September and October.

Faced with the euro, Uncle Sam’s currency gives 0.54% to $ 1.136 between banks. More generally, the Dollar index loses 0.5% against a basket of six reference currencies at 99.3 pts.