After a publication in social networks of President Trump last night, in which it was announced that an important commercial agreement would be revealed at 4:00 p.m. CET/10: 00 ET today, there are many speculations that it will be an agreement between the US and the United Kingdom. Although commercial relations between the US and the United Kingdom are not usually a material engine of global financial markets, today’s agreement could have more impact than usual. The approach will be mainly in itself the basic tariffs of 10% of the US that are in force under the current ‘paused’ conditions, says Chris Turner, an Ing currency analyst.
The DXY can challenge the resistance of 100.35/50
“The conclusion was that the FED recognizes the risks of stagflation of greater inflation and greater unemployment. These could be reflected in the next set of economic projections of the Fed that will be published in June. After initially falling last night, the interest rates of the USD are going up this morning, although this could also be a function of a better risk feeling. The secretary of the US Treasury of the US To Geneva to begin commercial conversations with their Chinese counterparts this weekend. “
“The US data calendar is light today. As usual, the weekly unemployment subsidy applications are in the spotlight and they are expected to correct a little down since the jump last week to 241,000. If the applications remain high, the dollar could lower a little, since the vision is that business pessimism is finally revealed in the labor market.”
“As mentioned, the nature of the commercial agreement between the US and the United Kingdom should be the largest driver of the DXY today. A surprising elimination of the 10% basic tariff could see the DXY challenge the resistance of 100.35/50, where we would expect more sales to arise. But we imagine that now they are now placed quite a lot of protective purchase orders over 101.00 by the speculative community.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
