Morning Commentary: Perception is Reality?

Foreign Exchange - Morning Commentary

Perception is Reality?

Share this story:
Facebook
Twitter
LinkedIn
Email
Alan Rose
Alan Rose
Foreign Exchange Senior Trader
Markets remain cautiously optimistic about a positive outcome regarding the meeting between President Trump and President Xi at the G20 meeting tomorrow to help jumpstart the stalled trade talks between the two countries. President Trump predicted a “productive meeting” with President Xi and markets continue to cling to the hope that something positive will result from their meeting.
 
Perception becomes reality for many in the market whether the result of their meeting is something tangible and concrete or just more scheduled meetings and “kicking the can down the road” to find common ground. The possibility of no breakthrough and more punitive U.S. tariffs on Chinese exports to gain bargaining leverage is currently not part of any mainstream thinking surrounding this weekend. Markets want to believe that there will be productive discussions.
 
As for the markets today, it is the same old song. Small ranges and consolidation patterns have been the norm over the past few days as investors and traders await the outcome of the G20 meeting. Asian equities were all in the red but European equities have rebounded and are now solidly in the green; U.S. equities are scheduled to open higher. G7 interest rates are near unchanged and the U.S. dollar is slightly weaker against both the major and emerging market currencies. I am sure Monday will bring a very different story to tell about how the markets reacted to the G20 meetings and other political spin from the White House.
HERE ARE THE KEY NEWS STORIES FROM OVERNIGHT:
  • Japan reported a number of key economic indices overnight. UR remained unchanged at the microscopic rate of 2.4%. Tokyo CPI remained unchanged at YoY at 1.1% but industrial production for May came in much stronger than expected at 2.3% against expectations of a gain of 0.7%. The Japanese yen is unchanged from last night’s close.
  • U.S. economic data this morning showed that Personal Income and Personal Spending for May came in near expectations with solid gains. Personal Income beat expectations rising by 0.5%, matching April’s report. Personal Spending was a fraction weaker than expectations at 0.4%, but higher than April’s reading of 0.3%. U.S. interest rates are near unchanged on the session.
If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Facebook Twitter LinkedIn Google Plus YouTube
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Unsubscribe from this list  |  Update email preferences
This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add foreignexchange@emails.cnb.com to your email address book or safe sender list.
Copyright ©2019 City National Bank – All Rights Reserved.
350 South Grand Avenue, 12th Floor, Los Angeles, CA 90071
City National Bank is a subsidiary of Royal Bank of Canada.
TERMS & CONDITIONS  |  PRIVACY STATEMENT
Equal Housing Lender
NMLSR ID# 536994 | City National Bank Member FDIC
                                                           

Comments

Popular posts from this blog

Are tax hikes coming?

Go long—for top rates