The Greenback Comes Under Pressure
Financial analysts claim major currencies like USD, CAD, AUD, and NZD are likely to weaken. The greenback is under pressure since last week’s interest rate cuts from the Federal Reserve.
The US dollar index is last at $97.11 from its previous three-month highs.
Meanwhile, the Euro slumped as investors wait for the new European Central Bank President Christine Lagarde’s first speech. The market expects the ECB speech to contain her response to Europe’s slowing economy.
The EUR/USD pair went down $1.1150.
The Japanese safe-haven currency demand waned as the greenback pushed higher at ¥107.87.
Investors watch the Sino-US trade talk developments as they said they were planning to sign the Phase One deal this month.
Analysts claim the slump was from the Institute for Supply Management’s announcing the manufacturing sector’s three-month weakening streak.
Seven Fed speakers are also set to speak this week.
The Aussie and Sterling both slumped 0.12% against the greenback at 6.905 and 1.2918, respectively. Both countries set central bank policy meetings this week with an expectancy to hold steady.
The US Points at the Chinese
The Chinese made sweeping maritime claims in the South China Sea, angering neighbors who owned part of the busy waterway. The US invited Southeast Asian leaders to an ASEAN summit, but only three leaders out of 10 showed up.
US representative Robert O’Brien said Beijing used intimidation to try to stop ASEAN nations from using offshore resources. The act blocked access to $2.5 trillion of oil and gas reserves alone.
O’Brien further claimed that the region has no interest in an era where a big country rules under theoretical justification.
The summit included leaders rallying against protectionism and global economic decline dragged down by the US-China trade war.
Most SE Asian leaders said it’s unnecessary to send ASEAN representatives if the US representation isn’t present himself.
The greenback dipped against the yuan at ¥7.0286.
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