EUR/USD 1.17386
0.003%
Gold 4299.39
0.458%
Oil 57.266
-0.824%
USD/JPY 155.873
0.202%
GBP/USD 1.33659
-0.149%
GBP/JPY 208.340
0.053%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Hong Kong Financial Secretary Paul Chan Mo-po stated today (December 14th) that public consultation on the new fiscal years budget is about to begin. One of the key issues will be how to further expand the scope and areas of economic development, accelerate the cultivation and application of innovative technologies, expedite the optimization of the industrial structure, create more high-quality jobs, and add momentum to high-quality development. We look forward to more concrete suggestions from everyone, working together to build a better future for Hong Kong.On December 14, the Sansha Maritime Safety Administration issued a navigation warning stating that rocket debris will fall in certain waters of the South China Sea between 10:15 and 12:15 on December 16, and entry is prohibited.On December 14th, a political funds income and expenditure report revealed that at least five branches of the Liberal Democratic Party (LDP) in Mie, Osaka, Yamaguchi, Nagasaki, and Kagoshima prefectures used political funds to pay for entertainment venues such as bars and nightclubs. In 2023, these expenditures totaled approximately 1.11 million yen (about 50,000 yuan). According to regulations, LDP branches are not required to record single political fund expenditures of less than 50,000 yen (about 2,264 yuan), suggesting the actual amount of political funds involved in the alleged misuse may be higher. In response to the allegations, the Osaka branch claimed the expenditures were "intended to create a smooth communication environment." The Mie and Nagasaki branches stated they would strengthen their management.On December 14th, the U.S. Department of Defense announced that two U.S. Army soldiers and one civilian translator were killed and three others wounded in an attack in Syria on December 13th. The Department of Defense stated that the attack was carried out by militants from the extremist group ISIS, and the attackers were killed. In response, U.S. President Trump stated that retaliatory action would be taken. Also on December 13th, Nourdin Baba, a spokesman for the Syrian transitional governments Interior Ministry, said that the gunman who attacked a joint Syrian-U.S. patrol in Homs province in central Syria was a Syrian security officer who may have held extremist views.On December 14th, local time, Ukrainian President Volodymyr Zelenskyy stated that Ukraine is preparing for meetings with the United States and European allies in the coming days. He will travel to Berlin to meet with US and European representatives to discuss "building the foundations of peace." Zelenskyy stated that this series of consultations is "decisive" for Ukraine, and that Ukraines core objective is "to achieve a decent and just peace." Earlier that day, Germany announced that it would host a US and Ukrainian delegation on the 14th to hold talks on issues such as the Russia-Ukraine ceasefire and to prepare for the summit of European leaders, including Zelenskyy, to be held in Berlin on the 15th. According to previous reports, US Presidential Envoy Witkov and former White House senior advisor Jared Kushner have already departed for Germany to meet with Zelenskyy and other European leaders.

Investor attention is on the Fed's minutes as recession fears drive the US Dollar Index towards 107.00

Daniel Rogers

Aug 16, 2022 11:47

截屏2022-08-16 上午9.53.03.png

 

The US Dollar Index (DXY) rises for a third day in a row during Tuesday's Asian session, gaining bids to 106.58. Thus, the greenback's signal captures the market's rush for risk-free assets in response to worries about the US and China's economies as well as worries about geopolitics in the Middle East, China, and Russia. It is noteworthy that aggressive Fed remarks and weaker US data enhance market trepidation and help DXY bulls.

 

Despite this, the DXY bulls closely monitor the gloomy statistics coming out of China and the US, particularly in light of the recession fears.

 

In August, the US NY Empire State Manufacturing Index fell from 11.1 in July to 31.3, below market estimates of 8.5. The August NAHB homebuilder confidence index in the US fell from 55 to 49, the lowest level since the start of 2020.

 

In other news, China's retail sales slowed in July to 2.7% YoY from 3.1% earlier and 5.0% forecast, while industrial production (IP) fell to 3.8% from 3.8% previously and 4.0% market estimates. Additionally, in an effort to counter bearishness, the People's Bank of China (PBOC) shocked the markets on Monday by reducing the rates on its medium-term lending facility (MLF) by 10 basis points (bps).

 

It should be emphasized that news stories about deteriorating coronavirus conditions in Shanghai, China's financial center, and the restart of Russian bond trading on Wall Street did not spur investors' desire to take risks. The Wall Street Journal's (WSJ) rumors of a potential meeting between US Vice President Joe Biden and his Chinese counterpart Xi Jinping may also encourage investors to take more risks. In a similar vein, Chinese President Xi proposed new efforts to revive the second-largest economy in the world.

 

The Pentagon said on Monday that the US, South Korea, and Japan took part in a missile warning and ballistic missile search and tracking exercise last week off the coast of Hawaii. Between August 22 and September 1, the US and South Korea will collaborate on military drills. The DXY rises as a result of the additional stress that geopolitical worries place on market sentiment.

 

The three-day downtrend in US 10-year Treasury yields is around 2.775%, while S&P 500 Futures are down at least 0.13 percent day-to-day.

 

Moving on, the secondary US housing and activity data released today should be of interest to DXY traders ahead of the release of the FOMC Minutes on Wednesday. The dollar's gauge might remain on the bear's radar if US data keep getting worse.

 

The three-week-old resistance line, which is now support at 106.35, would need to be broken for an extended period of time for DXY bulls to hit the monthly high above 107.00. However, in order to approach July's yearly high close to 109, the bulls need confirmation from late July's peak at 107.45.


Suggestion