The United States dollar and Chinese yen are decreasing. The agreement process is moving slowly and is under danger. The global economy is in danger too.
Two days ago, the dollar decreased by 0.09%. The dollar now equals to 108.65 yen, whereas the dollar tried to increase above 109 yen. This is what, a senior foreign-exchange strategist at IG Securities in Tokyo, Junichi Ishikawa claims.
The Asian Dollar had the lowest indicator for two weeks. It quotes at $1.1072 per euro from Tuesday.
China is looking at the Phase One agreement very pessimistically. Moreover, the dollar took a hit on Monday. The global economy is in considerable danger.
The Reserve Bank of Australia held a policy meeting. The dollar remains steady there. Additionally, the conference will provide some clues about the future of interest rates.
Everyone hoped that the 16 month-long trade war ended. Furthermore, if the “Phase One” deal was signed already, we would not have this kind of situation.
The reality is that against other major currencies, the dollar has decreased. At the moment, there are low hopes that the Phase One deal between China and the United States will have a conclusion. As a result, the dollar plummeted on Tuesday.
Risk of Recession
Economists around the world agree that removed tariffs would only have a positive outcome.
The United States President Donald Trump publicly criticized the Federal Reserve Bank because they did not lower the interest rates enough. Currency traders are shocked. These trade war negotiations and disputes affect the global economy, and there is a risk of the most significant economic recession in the world.
Global trade decreased because of these imposed tariffs between China and U.S. The United State’s side says that China imposed trades very unfairly upon them. But now it is irrelevant who is right and who is wrong. The main concern is to fix the rising global economic issue.