The dollar gains and stocks lack direction amid lingering trade tensions
Laurence Hayward | May 16, 2019
Yesterday, Reuters reported that China sold $20.45 billion in US treasuries in March – the most in 2 ½ years. Japan sold $11.07 billion – the most since February 2018. Trump appears to be holding off on the decision to raise US auto tariffs by as much as six months. Stocks were mixed globally with European and UK stocks rising.
"He who angers you conquers you"Elizabeth Kenny
May 16, 2019
EUR/USD 1.1188 GBP/USD 1.2801 USD/CAD 1.3424 AUD/USD 0.6906 USD/JPY 109.83 USD/CNH 6.9118 USD/ILS 3.5692 USD/MXN 19.0945 USD/CHF 1.0103 USD/INR 70.0338
The dollar continues to rise and stocks recovered yesterday as the trade disagreements with China subsided slightly. Different Fed members have said there will not be any cuts in interest rates and are calling for patience. Thomas Barkin of the Fed mentioned it was unlikely to cause a recession and that “the direct impact of tariffs is relatively confined and relatively knowable”.
Treasuries edged higher and 10-year yields slipped.GBP
PM Theresa May is being pressured by the Conservative Party and the 1922 committee to resign as soon as possible. The opposition Labor Party said they will vote against the Brexit bill, not just abstain, unless the bill meets their conditions. The Brexit uncertainty has hit the pound which continues to decline.EUR
German Chancellor Angela Merkel downplayed rumors of a rift between her and Emmanuel Macron of France saying they normally find the middle ground on matters. The euro is lower today and is heading for yesterday’s low of 1.1180 and will look for support there.CAD
The Canadian dollar strengthened slightly helped by WTI oil prices which rose about 85 cents this morning.ASIA/PACIFIC
Far East stocks were mixed with the Nikkei rising along with Chinese shares as the Shanghai Composite rose about 18 points. The Indian Sensex Index rose 278.6 points. The Indian rupee strengthened. The Australian dollar strengthening against the US dollar continued.
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