GLOBAL NEWS-
Sterling firmed after U.K. lawmakers voted to block a so-called no-deal Brexit, although the currency held well within its trading range from the prior day.The pound climbed as much as 0.2 percent to $1.3181 in Asia trading Thursday. The move came after a bill to prevent Britain from tumbling out of the European Union without an agreement passed the House of Commons by a solitary vote. It will now go to the House of Lords, which is widely expected to approve it.
The U.K. currency “got a lift though I would have expected a bit more,” said Bipan Rai, North American head of foreign-exchange strategy at Canadian Imperial Bank of Commerce. “There are still some hurdles to clear.” He sees the pound reaching $1.34 by the end of this quarter, given the declining odds of a no-deal scenario.The situation nonetheless remains exceptionally fluid. While the most recent vote is a step toward a so-called softer Brexit, there are many hard negotiations still to come, and the risk of an election also looms.
Japan and the United States are likely to hold their first round of trade talks in Washington on April 15-16, a Japanese government source with direct knowledge of the matter told.U.S. President Donald Trump has made clear he is unhappy with Japan’s $69 billion trade surplus with the United States - nearly two-thirds of it from auto exports - and wants a two-way agreement to address it.Trade frictions between Tokyo and Washington have been present since Trump took office in 2017 with a pledge to renegotiate trade deals he considers unfair to U.S. companies and workers.Japanese government officials are increasingly worried that Trump will demand a reduction in the number of Japanese auto imports to lower the trade deficit.They are also concerned that Trump could impose steep import tariffs on autos and auto parts, which would deal a big blow to the export-reliant economy.
The Reserve Bank of India (RBI) cut its policy interest rate by 25 basis points on Thursday, in a widely expected move to boost the economy just a week before voting begins in an election that will decide whether Prime Minister Narendra Modi gets a second term.Though inflation remains subdued, falling farm incomes and record high unemployment are seen hampering Modi’s prospects going into the polls after economic growth slid to 6.6 percent in December - its slowest in five quarters.The six-member MPC cut the repo rate to 6.00 percent as predicted by 57 of 67 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.75 percent.
The Chinese yuan will hold on to its recent gains against the dollar, and likely make a modest push forward from current levels over the coming year, as optimism about a U.S.-China trade deal offsets anxiety over weak domestic economic growth.Having slumped about 6 percent versus the dollar in 2018, with analysts wagering in early January of a move towards 7 per dollar by mid-year, the yuan has defied pressure and gained around 2.5 percent this year.That rebound was largely driven by progress in trade talks between Washington and Beijing and the People’s Bank of China (PBoC) setting consistently higher mid-point reference rates.The yuan was expected to gain 0.6 percent to 6.66 per dollar in a year, from about 6.70 on Wednesday, according to the latest poll of over 60 foreign exchange strategists taken over the past week.
Asian shares held near an eight-month peak on Thursday as investors awaited developments on Sino-U.S. trade talks, with both sides appearing closer to signing a deal and improved risk appetite weighing on safe-haven assets like the yen.MSCI’s broadest index of Asia-Pacific shares outside Japan took a breather after five straight days of gains took it to its highest since late August. Chinese shares started firm with the blue-chip index up 0.9 percent. Hong Kong’s Hang Seng index was a tad softer.Japan’s Nikkei nudged 0.2 percent higher to stay near a recent one-month top.
Gold prices inched up on Thursday as the dollar eased and a rally in equities paused, while investors kept a close watch on Sino-U.S. trade talks.Spot gold gained 0.2 percent to $1,291.90 per ounce by 0100 GMT.U.S. gold futures were up 0.1 percent at $1,296.30 an ounce.Asian shares paused near an eight-month peak as investors awaited developments on trade talks between the United States and China, who appear closer to signing a deal.The dollar was down about 0.1 percent against key rivals, hovering close to its lowest level in a week posted in the previous session.
Oil prices were mixed on Thursday, with Brent edging higher towards the psychologically important $70 level after easing in the previous session on data showing a surprise build in U.S. inventories.Brent futures were up 5 cents at $69.36 a barrel by 0224 GMT. On Wednesday, Brent dipped 6 cents, after touching $69.96, the highest since Nov. 12, when it last traded above $70.U.S. West Texas Intermediate (WTI) crude fell 3 cents to $62.43 a barrel. The contract dropped 12 cents in the previous session after briefly hitting $62.99, also the highest since November.Global benchmark Brent has risen nearly 30 percent this year, while WTI has gained nearly 40 percent, with prices underpinned by tightening global supply and signs of demand picking up.