FOMC minutes reveal a hawkish bias

The Federal Reserve Bank released its monetary policy minutes from the meeting that was held in March this year. The central bank had hiked interest rates by 25 basis points which was widely anticipated. At the meeting, central bank officials stuck to the baseline scenario of sticking with three rates hikes in 2018. Following the March rate h...

2018-04-19 John Benjamin Read more
US Treasury Report adds India to watch list

The semi-annual currency report was released by the U.S. Department of Treasury last week. The report, published under the Trump administration refrained from naming any of the trading partners as currency manipulators but maintained pressure on China. The report criticized China for its "non-market direction" and warned of the global risks. ...

2018-04-19 John Benjamin Read more
US China Trade War

Global risk sentiment remains on shaky ground this week as the US China trade war continues to intensify. Following the US President’s announcement of import tariffs and investment restrictions for China worth around $60 billion, Beijing responded this week by announcing its own 25% import tariffs on US goods worth around $50 billion, including ...

2018-04-13 James Harte Read more
Metals Rocked As US Trade Sanctions

Gold: Chinese Trade Retaliation Fuels Safe Haven Demand The yellow metal saw a strong rally initially on the week as the market saw a strong safe haven bid on the back of news that China was retaliating against trade import tariffs imposed by the US.  President Trump recently announced a move to impose $60 billion worth of tariffs on Chinese im...

2018-04-10 James Harte Read more
Trade Tensions

Less than 24 hours hours after the People’s Bank of China hinted it may change the components of its USD/CNY basket, global currency and bond markets were shaken by Bloomberg reports that it is considering scaling down its purchases of US treasury bonds. This was in light of surging trade tensions with US. Less than 12 hours later, Canadian offi...

2018-01-17 Ashraf Laidi Read more
NAFTA Talks

Little Progress in Mexico City The conclusion of the fifth round of NAFTA negotiations, ending yesterday in Mexico City, once again saw little in the way of significant progress. Given the lack of progress over the duration of these talks it is becoming increasingly unlikely that an amended treaty will be ratified before October 2018. Furthermo...

2018-01-25 James Harte Read more
US Dollar

The tax reform bill, unveiled Thursday by US Republican House Representatives may not be the piece of news long anticipated by currency traders favouring the US dollar. The bill imposes a one-time 12% tax on US companies’ accumulated earnings held outside the US, a cut from the 35% tax currently applied to their global earnings as well as their...

2017-12-12 Ashraf Laidi Read more
Interest Rate_Fed

President Trump is likely to announce his pick for a new chairman to the Federal Reserve before his trip to Asia scheduled for next week. This means an announcement for the Chair and vice chair at the Fed is imminent by the end of this week.  Here are the final candidates as revealed by Trump, which could occupy the top 2 jobs at the US central ...

2017-12-12 Ashraf Laidi Read more
SEPTEMBER 19 2017: The UN 72nd General Assembly opened its first week with debate, bringing a variety of world leaders to the GA Hall. US President Trump at General Assembly Hall

North Korean Communication Tensions between the US and North Korea have escalated following the release of a letter, believed to be written by the Foreign Affairs Committee, which urges “sharp vigilance” towards the “heinous and reckless” Trump administration. The letter, which was reported by the Australian Foreign Minister after it was recei...

2018-01-25 James Harte Read more
Canada_NAFTA

Canada & Mexico Reject US Demands The Trump administration became involved in yet more political embarrassment yesterday as Mexico and Canada rejected the President’s demand during talks aimed at securing a renegotiation of NAFTA. Negotiators operating on behalf of the US government presented a slew of proposals aimed at getting the Canadia...

2017-10-23 James Harte Read more