GLOBAL FX-
The dollar hovered near an 11-week low against its peers on Wednesday, weighed by expectations the U.S. Federal Reserve could cut interest rates some time in the next few months.The single currency was little affected by U.S. President Donald Trump’s accusation that Europe was devaluing the euro, which has gained roughly 1.4% against the dollar so far in June.Trump tweeted on Tuesday that the euro and other currencies are devalued against the dollar and put the United States at a big disadvantage.
India has decided to double the import quota for pigeon peas and sell some stocks on to the market to bolster the supply and prevent any shortages of the lentil, a staple in Indian cuisine, the food minister said on Tuesday.The import quota will rise to 400,000 tonnes and the government will sell up to 200,000 tonnes of the lentils into the local market, Ram Vilas Paswan said via Twitter.The government will also import 175,000 tonnes of pigeon peas from Mozambique, Paswan said.
Euro zone deputy finance ministers supported on Tuesday the European Commission’s view that disciplinary action against Italy over the country’s rising debt is warranted, a European Union official said.The deputy finance ministers, called the Economic and Financial Committee (EFC), discussed the Italian case on Tuesday after the Commission issued a report last week saying Italy was breaking EU rules by not reducing its public debt.“The EFC has adopted its opinion on Italy — fully in line with the Commission’s assessment,” the EU official, with insight into the EFC’s work, said.
Anxiety has plagued the industry for two years, starting with agonizing negotiations to overhaul the North American Free Trade Agreement between the U.S., Mexico and Canada, and spiking each time the White House threatened to close the U.S. border with Mexico to halt the flow of migrants.Worries peaked on May 30 when Trump suddenly announced the 5% levy on Mexican imports to begin on June 10, rising to 25% by October unless Mexico stemmed the stream of Central American migrants crossing into the United States.The uncertainty has left importers concerned about meeting orders from grocers and restaurants, and threatens to disrupt supply chains as some Mexican farmers cancel seed orders for next year or put them on hold.And if the tariffs become reality, importers are going to have to pass the taxes on to customers or risk going out of business.
“Tariffs are a great negotiating tool,” Trump tweeted, one day after saying he was ready to impose another round of punitive tariffs on China.Chinese Foreign Ministry spokesman Geng Shuang again would not be drawn into confirming a Xi-Trump meeting at G20, saying information would be released once it was available to the foreign ministry.“China does not want to fight a trade war, but we are not afraid of fighting a trade war,” he said, adding China’s door was open to talks based on equality.“If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end.”
Japan’s machinery orders unexpectedly rose for a third straight month in April, signaling solid business investment, though analysts expect an intensifying Sino-U.S. trade war and global slowdown to hurt capital spending plans in the coming quarters.The upbeat data may solidify expectations that a planned sales tax hike will go ahead in October, and offers some support for an economy hampered by faltering exports, slowing corporate earnings and factory activity.Cabinet Office data released on Wednesday showed core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, increased 5.2% in April from the previous month.
Gold prices rose on Wednesday after hitting a one-week low in the previous session, as worries over U.S.-China trade war flared up, curbing risk appetite and increasing the appeal of safe-haven bullion.Spot gold rose 0.4% to $1,332.14 by 0513 GMT, after falling to its lowest since June 3 at $1,319.35 in the previous session.U.S. gold futures were also up 0.4%, at $1,336.10 an ounce.
Oil prices fell more than 1% on Wednesday, weighed down by a weaker oil demand outlook and a rise in U.S. crude inventories despite growing expectations of ongoing OPEC-led supply cuts.Brent crude futures, the international benchmark for oil prices, were down 87 cents, or 1.4%, at $61.42 a barrel by 0231 GMT.U.S. West Texas Intermediate (WTI) crude futures were down 85 cents, or 1.6%, at $52.41 per barrel.
Members of the Organization of the Petroleum Exporting Countries are close to reaching an agreement on extending production cuts, the energy minister of the United Arab Emirates said on Tuesday.Speaking at the International Economic Forum of the Americas, Energy Minister Suhail bin Mohammed al-Mazroui said that given existing oil inventories the output curbs should remain in place or be extended “at least until the end of the year.”The “right decision will be a rollover,” said al-Mazroui, noting he favours continuing the curbs.