Trump Accuses China of ‘Currency Manipulation’
Trump Accuses China of ‘Currency Manipulation’ – CNBC
President Donald Trump accused China of manipulating its currency as the trade war between the world’s largest economies keeps escalating.
- China’s Yuan Devaluation is a Slap in Face for Trump – Australian Financial Review
- US Treasury Labels China a Currency Manipulator – Financial Times
- US ‘Destroying International Order’, China Media Says – Reuters
USD/CNH Above 7 as China Bites Back in Trade War
USD/CNH Above 7 as China Bites Back in Trade War – Profit & Loss
The FX market was surprised today when the Peoples Bank of China set the onshore USD/CNY rate much higher than anticipated at 6.9225, leading to the offshore USD/CNH currency pair extending gains through 7.00 – a level previously defended by the Chinese authorities concerned about capital outflows and one at which the pair has never traded above.
- Why ‘Cracking Seven’ is a Big Deal for China’s Currency – Financial Times
- China Hits Back at Trump with Weaker Yuan, Halt on Crop Imports – Bloomberg
Trump Hits China with More Tariffs, Sharply Escalating Trade Dispute
Trump Hits China with More Tariffs, Sharply Escalating Trade Dispute – Reuters
US President Donald Trump vowed to impose a 10% tariff on $300 billion of Chinese imports from Sept. 1, sharply escalating a bruising trade war between the world’s largest economies and jolting financial markets.
- China Slams Trump’s Latest Tariffs – South China Morning Post
- Trump Tariffs Increase Pressure on Fed to Cut Rates – Financial Times
- Fresh Trump Tariff Threat Roils Investors Around World – Wall Street Journal
- What Analysts Are Saying About Fresh China Tariff Threat – Bloomberg
Refinitiv Shareholders Approve Acquisition by LSEG
Refinitiv Shareholders Approve Acquisition by LSEG – Profit & Loss
Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, today announces that its shareholders have agreed definitive terms with the London Stock Exchange Group plc (LSEG) under which LSEG will acquire Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion.
Read MoreThe Undeclared Currency War: How the ECB Is Forcing the Fed’s Hand
The Undeclared Currency War: How the ECB Is Forcing the Fed’s Hand – Wall Street Journal
If losing demand to Europe weakens U.S. growth and threatens to push inflation too low, US rates must also drop.
Read MoreJohnson Issues Ultimatum to EU Over Brexit Talks
Johnson Issues Ultimatum to EU Over Brexit Talks – Bloomberg
Prime Minister Boris Johnson will not start talks with European Union leaders over Brexit unless they first agree to his demand to reopen the divorce deal they struck with his predecessor, Theresa May.
- Pound Falls Against Dollar Amid Brexit Fears – Wall Street Journal
- Sterling Tumbles to Two-Year Low as Market Fears Grow Over No-Deal Brexit – Financial Times
Powell Prepares to Launch Pivotal Interest Rate Cut
Powell Prepares to Launch Pivotal Interest Rate Cut – Financial Times
Jay Powell is this week widely expected to announce the first cut in US interest rates for more than a decade, as the Federal Reserve chairman seeks an insurance policy against a weakening global outlook and rising trade tensions.
- The Fed’s Coming Rate Cut Could Be a Blunder – Barrons
- Will the Fed Go Large with its Interest Rate Cut?– Financial Times
ECB Pledges More Easing and Ponders Inflation Goal Review
ECB Pledges More Easing and Ponders Inflation Goal Review – Reuters
European Central Bank President Mario Draghi all but pledged to ease policy further as the growth outlook deteriorates and even hinted on Thursday at a reinterpretation of the ECB’s inflation target, the cornerstone of its entire policy framework.
- Wall Street Drops on Earnings as Euro Swings on ECB Rhetoric – Financial Times
- For Traders, Draghi Wasn’t Dovish Enough as Rate Cut Priced In – Bloomberg
- Draghi Sparks a Wild Ride in Markets and Cements Expectations for a Fed Cut – CNBC
What This Week’s Turnover Surveys Tell Us About FX Swaps
What This Week’s Turnover Surveys Tell Us About FX Swaps (opinion) – Profit & Loss
Some puzzles were solved by the latest FX turnover surveys and others set – but one thing the UK survey in particular provided, was evidence that disrupting the FX swaps market structure is going to be a tough job.
Read MoreInterest Rate Risk Helps Steady FX Volumes
Interest Rate Risk Helps Steady FX Volumes – Profit & Loss
Although spot FX markets have been characterised as existing in a very low volatility and volume environment, the same cannot be said for the interest rate space, and that has enabled FX volumes to remain steady over the past year according to data from six regional FX committees.
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