Asian Markets The US President Donald Trump met for dinner with China’s President Xi on Thursday and said “I can see that long-term, we are going to have
The US President Donald Trump met for dinner with China’s President Xi on Thursday and said “I can see that long-term, we are going to have a very, very great relationship and I look very much forward to it.” News feeds confirmed that the United States has launched missile strikes in Syria which are likely to boost demand for traditional safe havens like Gold and Yen and may push up oil prices. The latest headline on the missile strike in Syria is that Trump had already informed China’s President Xi of Syria strikes.
The recent survey from the Australian Industry Group showed that the construction zone continued to show some growth in March with a Performance of Construction Index score of 51.2. The People’s Bank of China (PBOC) set the Yuan reference rate at 6.8949 versus yesterday’s fix of 6.8930.
The PBOC has drained a net 100 bln Yuan so far this week through Open Market Operations (OMOs) versus a net drainage of 290 bln Yuan last week. Japanese Finance Minister Taro Aso said on Friday that the US and Japan’s economic plans was not only limited to trades but will also cover energy and infrastructure. With US Vice-President Mike Pence Japan’s visit scheduled for the next month, we feel that a strong relationship will prevail between the two countries.
Moving on for the day, we have the Swiss Unemployment Rate released by the State Secretariat for Economic Affairs which is forecasted at 3.3%. This should give the Swiss enough strength to push them in demand. Germany has some important data release posted for the day. If the forecasted data for import and exports fall short, it should put them in trouble.
The pound may become volatile with goods trade balance. If the manufacturing production seems to hold an upper hand with the forecasted rates at 0.3%, the pound will be under control. Any positive words from BOE’s Governor Carney might boost the pound for the day.
The Canadian Unemployment Rate and Net Change in Employment looks to have a mixed reaction and should be watched carefully as they do not provide a clear direction for the Canadian dollar.
The Dollar Unemployment Rate and Nonfarm Payrolls are majorly hit with nonfarm payrolls forecasted at 180K. President Trump said that the missile strike in Syria was in response to the Syrian government’s chemical weapons attack this week. With the recent US strikes on Syria, the dollar is expected to go down.