Forex markets continue to run off Trump’s press conference rhetoric from Wednesday, whilst the China trade data overnight has helped to stabilise sentiment. With a speech from Janet Yellen passing without reference to the US economy or monetary policy, the focus remains on Trump. Despite picking up off the lows of yesterday’s session, the US dollar remains under corrective pressure today as the market is still taking a steer from his press conference in which he struck a protectionist tone and included little detail on his fiscal spending plans. US Treasury yields have curbed a decline for now as the US 2s/10s spread has stabilised around 118 basis points, however equally yields have also not shown too much appetite to push higher once more (which would help to support the dollar). The near term level to watch today on the US 10 year Treasury yield is at 2.40% which is a minor lower high and a break above it would suggest there may be a turn in sentiment. Markets are taking the glass half full with the mixed China trade data overnight, in which dollar denominated exports fell more than expected at -6.1% (-3.5% YoY exp) however, the imports were better than expected at +3.1% (+2.7% YoY exp), the latter helping to support commodities today. Sterling is back under pressure following the announcement that Prime Minister Theresa May is to make a major speech on Brexit and promoting a “Global Britain”. Markets tend to recoil against sterling any time the prospect of a hard Brexit increases.
ليست هناك تعليقات:
إرسال تعليق