The equities markets are waiting now for upside spike today or later tomorrow to watch containing degree of yesterday US equities indexes dip.
After US Treasury Secretary Steven Mnuchin raised the concern about the trade war against China by saying that China shouldn't weaken its currency as long as there is no deal yet adding that "the Yuan should be part of any possible trade deal". He is right the currency war is very important part of the trade war.
In the same time Trump was blaming the Fed for dampening the equities market yesterday by saying following the session that "The Fed is moving too fast with interest rate hikes".
His comments came a week after The Fed Chairman Jerome Powell said the central bank may eventually boost its benchmark past the neutral level, following the unemployment falling in September to the lowest rate since 1969!
US Treasury Secretary Steven Mnuchin's warning came, after IMF released on Tuesday it waited World Economic Outlook report which expected global expansion by 3.7% this year to be as the same as 2017, after it has expected last April this year growth to be by 3.9%.
IMF said that lower revision was mainly because Trump’s trade policies are a major reason why.
It was easy next to see the trade war fear containing the market sentiment punishing the US equities by massive selling wave looked to some extent overextended in that short time, as the US fundamentals are still OK unharmed by such comments.
The equities market across the globe suffered from that massive selling which sent Dow Jones down 3.15% and its future index referring now to losing of another 200 points.
The demand for safe haven and Trump criticizing of the Fed sent the US treasuries yield down raising the demand for bond generally.
The gold could find finally a leeway to rise above $1200 psychological level on this safe mode which came this time accompanied with pressure on UST yields.
USD lost its attractiveness on the slide of the cost of borrowing in the money market and also Mnuchin's warning which asks for no further Chinese currency depreciation versus the USD.
His comments were not positive to the Greenback, as they were not to the US equities which have been hit from another side by the oil prices slide which weighed down on the energy sector.
While Trump's criticism looked like it has been against the banking sector shares, as it has been against the Fed!
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
After US Treasury Secretary Steven Mnuchin raised the concern about the trade war against China by saying that China shouldn't weaken its currency as long as there is no deal yet adding that "the Yuan should be part of any possible trade deal". He is right the currency war is very important part of the trade war.
In the same time Trump was blaming the Fed for dampening the equities market yesterday by saying following the session that "The Fed is moving too fast with interest rate hikes".
His comments came a week after The Fed Chairman Jerome Powell said the central bank may eventually boost its benchmark past the neutral level, following the unemployment falling in September to the lowest rate since 1969!
US Treasury Secretary Steven Mnuchin's warning came, after IMF released on Tuesday it waited World Economic Outlook report which expected global expansion by 3.7% this year to be as the same as 2017, after it has expected last April this year growth to be by 3.9%.
IMF said that lower revision was mainly because Trump’s trade policies are a major reason why.
It was easy next to see the trade war fear containing the market sentiment punishing the US equities by massive selling wave looked to some extent overextended in that short time, as the US fundamentals are still OK unharmed by such comments.
The equities market across the globe suffered from that massive selling which sent Dow Jones down 3.15% and its future index referring now to losing of another 200 points.
The demand for safe haven and Trump criticizing of the Fed sent the US treasuries yield down raising the demand for bond generally.
The gold could find finally a leeway to rise above $1200 psychological level on this safe mode which came this time accompanied with pressure on UST yields.
USD lost its attractiveness on the slide of the cost of borrowing in the money market and also Mnuchin's warning which asks for no further Chinese currency depreciation versus the USD.
His comments were not positive to the Greenback, as they were not to the US equities which have been hit from another side by the oil prices slide which weighed down on the energy sector.
While Trump's criticism looked like it has been against the banking sector shares, as it has been against the Fed!
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din