Author: Dennis Li
Speaking alongside US President Trump yesterday at the G7 summit in southwest France, French President Macron said his country and the US have reached a “very good agreement” on France’s digital tax. Meanwhile, the British Prime Minister Boris Johnson also shared his Brexit plan with the rest of the G7 leaders saying he was prepared to take Brexit talks with the EU down to the very last minute before the 31st Oct exit deadline and a ‘no deal’ decision would be made on that day if necessary.
Overnight, we saw US stocks recover some of the losses from last Friday after President Trump said his negotiators had received a series of phone calls from Chinese officials asking to restart trade talks on Sunday while China’s Foreign Ministry denied it. The temporary optimism in the markets also supported the AUD broadly across other major currencies with both the AUDUSD and AUDEUR pairs recovering all losses made since last Friday.
As the September monetary policy meeting approaches, RBA governor Phillip Lowe has indicated that he does not believe further cuts will do much to help the economy due to global political uncertainty. Investors will continue to monitor the development of the latest escalation of the US-China trade dispute this week as there is a lack of market moving data until US Q2 GDP is released on Thursday.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.