The greenback is still undermined by the geopolitical concerns which weighed down on the UST yields which have been depressed recently by rising odds of having no more interest rate hiking this year amid the current lower than expected inflation pressure in US which makes the Fed in no rush to raise rates.
The gold is now trading close to $1335, after hitting its highest level since Sep. 26, 2016 at $1344.36 in the beginning of this week.
While the demand for risky assets could be supported by reaching a deal to extend the U.S. debt limit affording funds to the government till the middle of next December.
The deal calmed down the worries about the government ability to fund the rebuilding in Texas on the aftermath of the hurricane Hervey which dampened the insurer companies shares and the mining activities in this region.
While it looks that Trump can find his way to intersect into the monetary policy too, after receiving yesterday The Fed's vice president Stanley Fisher's resignation letter.
Trump is not in favor of strong dollar and prefer weaker dollar for supporting the exporting activity and lowering the imports.
The current United States Secretary of the Treasury under the Trump administration Steven Mnuchin said it clearly last week that a weaker currency is “somewhat better” for trade.
Trump is now working for imposing new sanctions against North Korea and its trading counterparts through the UN security council but that can be met by Russian objection.
As the Russian side became reluctant to add more pressure on North Korea which can go forward as usual with more desperation of reaching a diplomatic solution as the Russian president Putin indicated.
While The US administration is still raising the pressure on China to cap the North Korean plans believing that the clue to solve this problem is in China hand.
God willing, The markets will be waiting today for the outcome of ECB members meeting, after his president Mario Draghi refrained from talking down the value of the currency in his Jackson Hole speech earlier last month.
Following the last meeting on Jul. 7, Draghi signaled that the ECB members are to talk about the QE tapering next autumn.
While the minutes of that meeting came out to show discrepancy about the suitable forward guidance that should be given to pave the markets for new action without misleading or lagging.
The minutes said that the members agreed that there should be a change but it must be "incremental" as postponing an adjustment for too long could give rise to a misalignment between the Governing Council’s communication and its assessment of the state of the economy.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
The gold is now trading close to $1335, after hitting its highest level since Sep. 26, 2016 at $1344.36 in the beginning of this week.
While the demand for risky assets could be supported by reaching a deal to extend the U.S. debt limit affording funds to the government till the middle of next December.
The deal calmed down the worries about the government ability to fund the rebuilding in Texas on the aftermath of the hurricane Hervey which dampened the insurer companies shares and the mining activities in this region.
While it looks that Trump can find his way to intersect into the monetary policy too, after receiving yesterday The Fed's vice president Stanley Fisher's resignation letter.
Trump is not in favor of strong dollar and prefer weaker dollar for supporting the exporting activity and lowering the imports.
The current United States Secretary of the Treasury under the Trump administration Steven Mnuchin said it clearly last week that a weaker currency is “somewhat better” for trade.
Trump is now working for imposing new sanctions against North Korea and its trading counterparts through the UN security council but that can be met by Russian objection.
As the Russian side became reluctant to add more pressure on North Korea which can go forward as usual with more desperation of reaching a diplomatic solution as the Russian president Putin indicated.
While The US administration is still raising the pressure on China to cap the North Korean plans believing that the clue to solve this problem is in China hand.
God willing, The markets will be waiting today for the outcome of ECB members meeting, after his president Mario Draghi refrained from talking down the value of the currency in his Jackson Hole speech earlier last month.
Following the last meeting on Jul. 7, Draghi signaled that the ECB members are to talk about the QE tapering next autumn.
While the minutes of that meeting came out to show discrepancy about the suitable forward guidance that should be given to pave the markets for new action without misleading or lagging.
The minutes said that the members agreed that there should be a change but it must be "incremental" as postponing an adjustment for too long could give rise to a misalignment between the Governing Council’s communication and its assessment of the state of the economy.
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din
