Pound Under Pressure as US-China Tensions Escalate
GBP/USD continues to lose ground this week. In the North American session, the pair is trading at 1.2917, down 0.32% on the day. On the release front, the U.K. released key employment numbers. Wage growth slowed to 3.2% in March,...
From BRICS To WOWS
From BRICS to WOWS Financial markets finally pulled their heads out of the sand overnight as the US-China trade war escalated when China responded by imposing USD60 billion in tariffs of their own on imported US goods. A healthy dose...
FTSE Plunges as Tariff Tussle Sets Back Equity Markets
The FTSE has dropped sharply on Monday. In the North American session, the pair is at 7,167, down 1.5% on the day. Earlier in the day, the blue-chip FTSE dropped to 7,152, lowest level since late March. There are no...
Trade War Deadlock, G20 Next Month May Prove Crucial
Market movers today Today’s data calendar is quite thin, although the Norwegian GDP number will attract some attention. The number is widely expected to fall short of Norges Bank’s March estimate for Q1, but given the temporary nature of the...
Weekly Economic and Financial Commentary: All Trade, All the Time
All Trade, All the Time Prior to the recent escalation, there had actually been something of a détente in the trade war. China’s informal agreement to buy more U.S. soybeans helped shrink the trade deficit with China to its smallest...
The Weekly Bottom Line: Record Job Gain Defies Expectations
HIGHLIGHTS OF THE WEEK United States Effective today, the U.S. increased tariffs to 25% on $200bn worth of Chinese imports. The threat to extend a 25% tariff to virtually all Chinese imports “shortly” remains. This comes even as the two...
Tariff Rumor Turns to Tariff Fact
Executive Summary The United States moved ahead with an increase in tariffs on Chinese goods today. Risks are, unsurprisingly, to the downside for our current Chinese GDP forecast, although much will depend on how this fluid trade situation evolves as...
Week Ahead: US-China Trade Impasse and Handful of Macro Pointers
The economic calendar is a lot quieter next week, but volatility could nonetheless remain elevated. At the time of writing this report, the US stock markets were bouncing off their lows after trade talks ended for the day. According to...
China Weekly Letter – Chicken Game is Back On
Six months of progress in trade talks have ended abruptly. There is now a clear risk that a deal will not be reached until H2 and a period of financial stress will be needed to get us there. CNY took...
GBP/USD Breaks Bear Trend after US CPI Miss
The latest US inflation numbers were again slightly below expectations, causing the Dollar Index to further extend its losses, with the Canadian dollar leading the gains thanks to a much stronger jobs report from the North American nation. Headline CPI...
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