Trump supports lower interest rates
On Tuesday the President of the United States of America Donald Trump stated that it would better if the Federal Reserve pause the increases on interest rates next week. The statement was somehow expected due to his continuing objection on rate hikes. Trump said to Reuters in an interview.
“I think that would be foolish, but what can I say?”
The president stated that he lacked the flexibility of lowering interest rates in order to encourage the general U.S. economy while he is trying to avoid an escalation between China and possibly other nations. He said.
“You have to understand, we’re fighting some trade battles and we’re winning. But I need accommodation too.”
Today Asia stocks were higher
Japanese equities saw profits today. The Topic index was higher by more than 1.90% in midday trade while the popular Nikkei 225 went up more than 2%. Today Asia stocks, in general, moved upwards with shares of automakers in South Korea, China and Japan, going higher due to data news that China is considering to cut taxes on automobiles manufactured in the United States to 15% from the actual 40%. After the news, the stocks of Automobile manufacturers jumped. Mitsubishi Motors surged more 2.70%, Yamaha Motors rose 4.30%, while Toyota inched up 2.24%.
European markets higher but the Pound fell
European Equities went higher this morning due to President Donald Trump saying he was positive on achieving a trade agreement with China.
Now in Europe, the feeling continued to be on the weak side owing to increased political confusion in the United Kingdom. The political uncertainty surrounds the chance that the conservative administrators may vote on a no-confidence action about May’s administration on Wednesday.
The reports appeared less than 24 hours after May suspended the parliamentary election on her Brexit agreement, declaring its failure imminent. GBP floated around 1.2500 versus the greenback and lost about 2% so far this week.
Dollar close to 30-days high
On Wednesday the greenback continued to hover close to a 30-day high versus its rivals, boosted by a retrace in the U.S. yields and the vulnerability of the GBP as it continues to be battered over the Brexit. The USD was boosted as long-term U.S. Treasury yields jumped from the 90 day lows.
The dollar index which is the measure of its power versus the six major currencies held at 97.419 after climbing overnight to 97.540. Yukio Ishizuki, senior forex strategist at Daiwa Securities in Tokyo said
“In addition to higher Treasury yields, the weakening pound is providing a key boost to the dollar,” “With Brexit talks seemingly headed towards a dead end, this has been a golden opportunity for speculative market players to short the pound.”