MORNING BRIEFING: US Dollar strengthens as US – China Trade row erupts

[RTFX-Trading]

MORNING BRIEFING: US Dollar strengthens as US – China Trade row erupts

What’s new:
USA / China: Trade row erupts after President Obama accepted to impose additional duties on Chinese tyres.
United Kingdom: Trade union chief warns of double-dip recession.
United States: Bin Laden warns US on their close ties with Israel.
United States: Consumer sentiment improves.
United States: Import prices are higher following rise in oil prices.
United States: Budget deficit less than expected at $111.4B.

Today:



Overnight Rates and Indices:
EURUSD: 1.4603 – 1.4516.
USDCHF: 1.0423 – 1.0359.
GBPUSD: 1.6685 – 1.6561.
EURJPY: 132.08 – 131.30.
USDJPY: 90.65 – 90.21.
DowJones: 9'605.41 -0.23%.
NASDAQ: 2’080.90 -0.15%.
S&P 500: 1’042.73 -0.14%.
Nikkei: 10’202.10 -2.32%.
Shanghai: 3’024.15 +1.15%,
Gold: $997.60.
Crude Oil: $68.32.
 
Comments:

The US dollar increased sharply against other major currencies following the decision by President Obama to accept recommendations by the US International Trade Commission (ITC) to impose additional duties on Chinese-manufactured tyres. The Euro is down 0.26% against the greenback to 1.4532, the Pound down 0.49% to 1.6574, the Swiss franc is at 1.0408 down a quarter percent while the Australian and New Zealand Dollar are at 0.8562 and 0.6974, down 0.81% and 1.39% respectively.

The dollar had ended the week on a soft note as riskier assets continued to enjoy renewed risk appetite in light of positive economic data. The consumer sentiment numbers from the University of Michigan came in at 70.2 versus market consensus of 67.3.

The next few days are filled with economic data, most notably inflation numbers from the US, Europe and the UK, Retail Sales from the US and the UK, also Industrial production and housing starts from the US.

Good week.

Emman Xuereb
RTFX Ltd
Head Office
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