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Investing.com – Cryptocurrencies prices gained on Tuesday, despite a report by The Bank for International Settlements (BIS) said Bitcoin suffered from “a range of shortcomings”.
The tone of the market is bearish because of Trump’s new tariff threat. The USD/JPY could plunge if China retaliates with a new threat of additional tariffs on U.S. goods. The price action in the U.S. stock market and Treasury markets is likely to dictate the movement in the Dollar/Yen.
Now that the AUD/USD has already made a lower-low to extend the downtrend, the direction of the Forex pair the rest of the session will be determined by trader reaction to Monday’s close at .7422. Assume the downtrend will continue, given the bearish fundamentals, but be prepared for a closing price reversal bottom especially if the U.S. and China reach a trade agreement.
Lingering concerns over the US-China trade dispute could continue to pressure the AUD/USD and NZD/USD or at the least limit their upside potential if there is a short-covering rally. The fact that both Forex pairs haven’t “crashed” suggests that investors feel that some solution will be reached as long as both parties are still at the negotiation table.
Investing.com – Gold prices rose modestly as the U.S. dollar remained flat against its rivals and rising U.S.-China trade tensions fuelled investor appetite for safe-haven gold.
Haven currencies, including the Japanese yen and Swiss franc, inched higher in muted trading Monday, as the trade row between the U.S. and China remained in focus. Trade tensions have been on the rise, with China vowing to retaliate against a U.S. round of tariffs by slapping duties on American export products, including crude oil, and suspending all previous trade agreements with President Donald Trump’s administration. Uncertainty over future relations between the two trade giants saw investors drop risky emerging-market currencies and go for safer ones.
Investing.com – The U.S. dollar was roughly unchanged against its rivals Monday as trade-war angst fuelled demand for safe-haven currencies, keeping a lid on upside momentum in the greenback.
Moody's de Mexico S.A. de C.V has withdrawn the Baa2 (Global Scale, local currency) and Aa2.mx (Mexico National Scale) ratings on the State of Nuevo Leon's enhanced loan with Afirme with an original amount of MXN 700 million and maturity of 20 years. The ratings have been withdrawn following the June 1, 2018 prepayment by the State of Nuevo León. Please refer to the Moody's de México Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.mx.
Moody's de Mexico has withdrawn the Baa1 (Global Scale, local currency) and Aa1.mx (Mexico National Scale) ratings of the MXN 150 million (original face value) enhanced loan of the Municipality of Merida from Banorte with a maturity of 15 years. The ratings have been withdrawn following the June 8, 2018 prepayment of the loan by the Municipality of Merida. Please refer to the Moody's de México Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.mx.
Gold prices moved lower and are consolidating on Monday after tumbling on Friday as the dollar gained traction. The ECB and the Federal Reserve met last week and are on diverging paths as the Fed continues to raise rates and normalize. Higher U.S. interest rates are making the dollar more attractive and gold prices more expensive in other currencies. As long as the dollar continues to make headway, gold prices will have a difficult time gaining ground. The ECB on the other hand, kept rates unchanged but discussed the phasing out of their quantitative easing. QE will be reduced by half in September and will phase out completely as of December 2018. Just because QE will be terminated does not mean that the ECB will begin to increase interest rates.
Investing.com - The dollar fell to the day’s lows against the yen on Monday as heightened trade tensions between the U.S. and China hit market sentiment, bolstering safe haven demand for the Japanese currency.
Comex gold futures for August delivery were up 0.21% to $1,281.20 a troy ounce as of 10:28 AM ET (14:28 GMT). On Friday U.S. President Donald Trump announced a 25% tariff on 818 different Chinese goods worth $34 billion beginning on July 6. The two largest economies in the world have been in a tit-for-tat over global trade tariffs in recent months as the two struggle to reconcile their trade differences.