FX Handover: Trump Buddies Up with Xi, Explores Dumping Powell
Matt Weller, CFA, CMT June 18, 2019 8:51 PM
See a summary of the top FX themes and trends from today's US session!
- Signs of a thaw in US-China trade talks? Presidents Trump and Xi spoke via phone to set up “an extended meeting” at next week’s G20 summit, with trade teams to “begin talks prior” to the meeting.
- Separately, Bloomberg reported that the White House explored demoting Fed Chairman Powell earlier this year, though a spokesman later said it was a “six-month old story.” Traders are looking ahead to tomorrow’s FOMC meeting – see how and why the Fed may look to “set the stage” for a rate cut next month.
- The latest UK Conservative Leadership vote knocked out Dominic Raab ahead of tonight’s televised debate, but Boris Johnson remains the prohibitive favorite with 126 votes. The pound finished in the middle of the major currency pack today.
- Much to the chagrin of President Trump, ECB President Draghi indicated that the central bank would provide additional stimulus (rate cuts?) if growth and inflation data do not improve. The euro was the weakest major currency pair on the day as traders priced in a 10bps cut in September (moved forward from December).
- The New Zealand dollar was the strongest major currency in today’s risk-on trade.
- Oil prices gained 4% on renewed optimism about global growth.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.