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The stock markets hesitate before the decision of the Fed of Wednesday
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Investors await trade agreements between the United States and their partners
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Asian currencies under ramp fires after the Taiwanese dollar flight
(Afternoon update in Asia) by Ankur Banerjee
The world’s actions that have remained in a narrow range on Tuesday and the dollar recovered part of its recent losses against its Asian counterparts, while investors concerns about American customs prices and their impact on economic growth are reappeared.
These concerns, associated with the promises of the main oil producers to increase supply, have also maintained crude prices at levels close to their lowest levels for four years. GOLD
The erratic trade policies of US President Donald Trump have fueled large waves of dollars sales since April, investors turning away from American assets, pushing the Euro, Yen and the Swiss Franc on the rise.
This sale of dollars has now extended to Asia, underlined by the record increase in the Taiwanese dollar
TWD = TP in the last sessions, which has fueled speculation about the possibility of re-evaluation of regional currencies to obtain commercial concessions from the United States.
This increase suggested that a significant tank was underway and highlighted an economy, among others, where years of significant commercial surpluses have enabled exporters and insurers to accumulate long positions in dollars who are now questioned and on the hotspot.
The attention was paid to Hong Kong on Tuesday, where the de facto central bank bought $ 7.8 billion to prevent the local currency from strengthening and breaking its anchoring in the greenback.
“Real action today is on the Asian exchange market,” said Charu Chanaa, chief strategist at Saxo in Singapore.
If these currencies continue to strengthen strongly, this could arouse fears of an “reverse Asian monetary crisis”, with potential training effects on the bond market, Asian institutions fearing to re -evaluate their exposure not covered to the treasury assets
-On the continent, the Chinese yuan CNY = CFXS has strengthened to reach its highest level since March 20 at 7.23 for a dollar. CNY/
The Taiwanese dollar was quiet enough last Tuesday at 30.185 for an American dollar, not far from the highest of almost three years of 29.59 which he touched on Monday. FRX/
With regard to actions, the widest MSCI index of Asia-Pacific Actions outside Japan. Imiapj0000pus was up 0.2%, Japan being closed due to vacation. Taiwanese actions .twii have changed little.
The Chinese markets have returned from prolonged leave, the index of the star values. CSI300 having increased by almost 1%. The Hang Seng. His of Hong Kong increased by 0.69%.
The term contracts on European Actions STXEC1 have indicated a halftone opening in the region before a series of manufacturing data which will probably provide an indication of the impact of customs duties. The term contracts on American actions ESCV1 NQC1 have also slipped.
Investors’ attention focused on the possibility of eating trade tensions between the United States and China after Beijing said last week that it assessed a Washington offer to organize discussions on customs duties.
But in the absence of details, investors found themselves trying to give meaning to titles from the White House.
President Donald Trump said on Sunday that Washington met many countries, including China, and that his main priority with China was to obtain a fair agreement.
Trump also imposed 100 % customs duties on the United States on Monday, but he gave little details on how these rights are applied.
Mr. Chanana, from Saxo, said that major titles on customs tariffs were more likely to orient the market. “This means that the risk/tactical reward ratio could still be oriented upwards with solid data that is maintained and a feeling supported by hopes for trade agreements
Monday data has shown that the growth of the US service sector has accelerated in April, while a price measure paid by companies for materials and services has reached its highest level for more than two years, reporting an increase in inflationary pressures due to customs tariffs.
The attention turns to the political decision of the federal reserve on Wednesday, where the central bank should maintain its rates, but the spotlights will be on how political decision -makers are likely to navigate a path marked by customs prices.
“The Fed remains taken between the hammer and the anvil,” said Christian Scherrmann, chief economist of DWS for the United States. “We believe that she will opt for a slightly more hawkish tone, but more in the sense of a prolonged break than in that of a potential increase
Traders provide 75 points of base this year, the first measure being possible in July, according to LSEG data.
In raw materials, oil stabilized on Tuesday after reaching its lowest levels in four years during the previous session, following the decision of OPEC+ to accelerate production increases. GOLD
Gold prices have reached their highest level in a week thanks to the demand for refuge values. GOL/ GOLD
