Japan urges caution over Trump's complaint on strong dollar

Japan urges caution over Trump's complaint on strong dollar

Much of Trump's ire with the Fed seems directed at the impact that the central bank's interest rate increases have had on the dollar. FxWirePro's Hourly Dollar Strength Index stood at -63.16 (Bearish) by 1000 GMT.

Another point must be made regarding supposed competitive devaluations by central bankers and policymakers: an institution need not attempt outright currency depreciation as an end in and of itself to manipulate a currency. The U.S. economy likely grew at a 4.2 percent annual rate last quarter, the fastest since 2014, according to a Bloomberg survey. On the downside, support is seen at 1.1671 (21-DMA), a break below could drag it till 1.1600.

Borrowing costs globally jumped on Tuesday after speculation that the Bank of Japan is close to announcing measures to dial back monetary stimulus. It was unusual because the White House usually refrains from commenting on monetary policy. The index started the year at 3,314 points and dipped the lowest level of last two years reaching 2,691 points in July. The dollar fell against its major trading partners after CNBC reported that Trump was anxious the Federal Reserve will raise interest rates twice more this year.

Sputnik reported that US President Donald Trump said Friday that he was ready to impose tariffs on all imports from China. FxWirePro's Hourly Swiss Franc Strength Index stood at 68.68 (Bullish) by 1000 GMT.

"Although U.S. equities edged lower on Friday and the yen strengthened, most cross-asset moves are supportive of APAC equities - particularly dollar weakness, strength in emerging markets FX, and a dramatic bear steepening of global yield curves". Japan's Nikkei stumbled 1.4%, while Australian shares and South Korea's Kospi index fell 0.9% each. The yen benefitted the most, rising as much as 0.61% versus the greenback, closely followed by the Euro and the Kiwi. Brent eased 17 cents to $72.90.

US crude was last off 3 cents at $68.24 a barrel after posting its third straight weekly loss.

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Spot gold was down 0.5 percent at $1,225.41 an ounce by 1441 GMT, close to last Thursday's low of $1,211.08, while US gold futures for August delivery were down 0.5 percent at $1,225.50.

The German bund prices suffered ahead of the country's manufacturing PMI for the month of July, scheduled to be released on July 24 by 07:30GMT.

Benchmark 10-year Japanese Government Bond futures opened weaker on Monday, sending yields to six-month highs.

As investors sold bonds, the country's stock markets moved higher on the prospect of policy easing. Onshore, the redback jumped 0.13 percentage point to 6.8218 at 3 p.m from the morning.

During the meeting with reporters Saturday, the Treasury secretary played down comments Mr. Trump made earlier in the week about the Federal Reserve and currency markets.

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