Dollar Strong On Flat Asian Indices
The greenback has significantly reinforced. Asian equities were boosted by PBOC’s decision to ramp up the Yuan, by increasing foreign exchange risk reserve ratio to 20% from 0%. But now the indices weakened. Nikkei is almost flat after earlier ally to 22635. Hong Kong HSI lifted 0.7%. China SSE reduced -0.77%. Offshore Yuan is fluctuating near 6.84.
Liam Fox (UK Trade Minister) claimed that he expected “not much more than 60-40” chance of a no-deal Brexit. The Trade Minister accused European Union, saying that the: “intransigence of the (European) commission is pushing us towards no deal.” Fox told if EU resorts to “theological obsessions of the unelected” over “economic wellbeing of the people”, then it’s a “bureaucrats’ Brexit, not a people’s Brexit”.
New Zealand Treasury published Monthly Economic Indicators report for July, which concluded positive wage growth but weakened retail spending outlooks. Risks were high on housing market, business confidence, and international trade protectionism. Inflation stayed muted but pressures are seen to be rising. It also noted that “any monetary policy tightening remains some time away”.
Australian TD securities inflation grew 0.1% mom in July. Today, Japan and Britain will release Gross Domestic Products. We’ll also get UK production data. US will feature Consumer Price Index and PPI. Canada will publish employment. China will announce trade balance, CPI and PPI.