Let us track changes in the market. During talk of a snap election, the United States dollar traded firmly against the Japanese yen. Yoshihide Suga is a frontrunner to succeed Shinzo abe in next week’s leadership ballot. Suga signaled it in a newspaper interview.
Last session, the yen changed hands at 106.30 per the United States dollar.
Meanwhile, the British pound was the overnight laggard – shedding 0.8 on the United States dollar- during a new crisis in European Union-United Kingdom trade negotiations.
A Financial Timers report suggested that Britain might legislate to override its Brexit withdrawal agreement, prompted the European Union to warn there will be no deal if that happened. Thus, it raised the prospect of a hard Brexit again.
Later on Tuesday, new talks will start.
In Asia, the pound dipped marginally to $.1362. Thus, it sat a fraction above a two-week low versus the euro at 89.77 pence.
Tapas Strickland is the NAB economics director. So, he said that the key question for markets is whether the remarks are still mostly brinkmanship as negotiations near the finish line. The mild market reaction is suggesting that markets think so and still sniff a deal.
In the Asian trading day, much of the data releases are domestically focused. Australian business confidence figures and payrolls are due at 0130 GMT.
Final European Gross Domestic Product figures are due later in the day.
In April-June, Japan’s economy shrank an annualized 28.1%. It is worse than the initial estimate of a 27.8% contraction. That is what showed revised data from the Cabinet Office on Tuesday.
The euro softened into Thursday’s European Central Bank meeting. The British sterling dumped fresh worries about hard Brexit.
Investors weighed whether on an accommodative turn from the European Central Bank later this week. Thus, it could hit the euro. The United States dollar held on to small overnight gains.
That is the current news of the United States.
- Trading Instrument