- Nineteen prisoners use cutlery to break out of cells at Winchester prison
- France wants progress in Ukraine before Russia returns to G7
- Italy president begins talks to seek way out of government crisis
- Italian PM expected to resign as political chaos deepens
- Russia says US cruise missile test ‘regrettable’
- Kremlin - No date set for Normandy talks on Ukraine despite Macron meeting
- Egypt court hands out 6 death sentences on terror charges
- Putin says Russian nuclear explosion poses no threat
- Russian panel eyes alleged foreign interference in protests
- Gran Canaria wildfire triggers evacuation of thousands of people
- PM Johnson calls on Germany and France to compromise on Brexit
- Sudan's ex-president Bashir arrives at corruption trial
TEHRAN, oct 29_Hopes for an easing in Sino-U.S. tensions buoyed trade-exposed Asian currencies on Tuesday, while growing expectations the U.S. Federal Reserve could take a wait-and-see approach to further easing underpinned the dollar.
TEHRAN, Young Journalists Club(YJC)_Most moves were modest, though, as caution tempered the mood. The Australian and New Zealand dollars each rose nearly 0.3%. The safe-haven currencies of the Japanese yen and Swiss franc each eased very slightly.
“Global risks remain but have shown signs of subsiding,” Philip Wee, FX strategist at Singapore’s DBS Bank said in a note.
“China-U.S. trade tensions have stopped escalating ... the Fed has reasons to sound less dovish on a ‘half-full’ narrative for the U.S. economy.”
U.S. President Donald Trump had said a trade agreement looked to be ahead of schedule on Monday, without detailing the timing. The United States also said it was studying whether to extend tariff suspensions due to expire in December.
That followed remarks late last week from both U.S. and Chinese officials saying they were “close to finalising” a deal, driving equities and bond yields higher on Monday. The appetite for risk remained on Tuesday.
The Aussie hit its highest since Wednesday, touching $0.6859, while the greenback held on to its overnight progress against the yen to stand at 108.97 yen per dollar, just below a three-month high.
China’s central bank lifted its official yuan midpoint to the highest level in over two months on Tuesday, and the currency edged higher to 7.0564 per dollar.
The dollar was a little softer against the euro at $1.1090 and a little stronger against of currencies at 97.813.
Beyond the trade headlines, the major focus this week is the Fed meeting. The U.S. central bank is expected to cut rates for a third time in a row when it concludes its two-day meeting on Wednesday.
Investors are watching for any indication that further cuts are likely, with futures pricing suggesting more easing is expected in 2020. If that is not foreshadowed, traders expect the dollar to rise.
“The forward guidance will be the thing,” said Westpac analyst Imre Speizer in Auckland.
“It still looks like a done deal that they will cut, but then the risk is that they might characterise that as just one more insurance move ... the market will have to take out the pricing it’s got for future dates.”
The British pound, meanwhile, nudged lower to $1.2855, with Brexit hanging in the balance.
source:reuters
Your Comment