US President Trump criticized Fed’s policy on interest rate hikes yesterday, contrary to Fed Chair Powell’s testimony on Tuesday’s Semiannual Monetary Policy Report where he supported Fed’s gradual approach to hiking.
As a result, Dollar slipped against Dollar and reversed earlier gains but still remains bullish in the medium-term and above 111 until the bears manage to prove otherwise, if so.
In addition, President Trump said the European Union abuses the US, referring to the recent EU antitrust fine of 5 point 1 billion dollars on Google this week, using the case for ammunition for auto-tariffs and of course rising concerns about the future EU-US relationship.
But the US President didn’t stop there, he also criticised the People’s Bank of China for carrying out monetary policies that only harm their local currency, causing yet another slippage of Yuan to a 13-months low. The currency weakened to 6.77 ped dollar adding up to the recent losses caused by trade conflicts and imposed tariffs on July 6.
Despite today is Friday and we should be expecting the end of week flows to kick in, in case opportunities do not look promising, we are also expecting a number of earnings reports to be released, with Schlumberger being the day’s highlight.
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