Greenback On Hold Ahead Rate Hike
The greenback is rather soft, awaiting today’s Fed meeting, where members are expected to execute a 25bps rate hike. Key takeaway for investors will be further policy path, and if it’s unveiled, markets will cheer.
Donald Trump announced he wanted to stop military exercise with South Korea while the negotiation with North Korea is in progress. The President stated: “we’re not going to be doing the war games as long as we’re negotiating in good faith.” “So that’s good for a number of reasons, in addition to which we save a tremendous amount of money”. And, “you know, those things, they cost. I hate to appear a businessman, but I kept saying, what’s it costing?”
Itsunori Onodera, Japanese Defence Minister, said: “the drills and the US military stationed in South Korea play a vital role in East Asia’s security.” The Minister wants to “share this recognition between Japan and the US, or among Japan, US and South Korea.” He also claimed that due to current Singapore summit, Japan’s policy will not be able to “put pressure” on North Korea. Instead, Japan will keep trying to improve its defences against a possible ballistic missile strike from the notorious peninsula. Yoshihide Suga, Chief Cabinet Secretary, added that Japan might cover some of the costs of North Korea’s denuclearization, as a commitment to IAEA (International Atomic Energy Agency).
Australian Westpac consumer confidence increased 0.3% this month. Swiss is about to feature Purchasing Price Index. Eurozone will publish industrial production and employment. Britain will present Consumer Price Index and US will announce Purchasing Price Index.