The Chinese yuan breached 6.8 per dollar Monday after Trump rejected an Iranian counteroffer to a proposal to end the war. Washington wants assurances that Iran will end its nuclear program as part of any peace deal.
Iran did not agree to demands regarding its nuclear programme, instead calling for separate nuclear negotiations and for some of its highly enriched uranium to be diluted and the rest sent to a third country.
China's export growth gathered pace in April on front-loading amid fears the Iran war could push global input costs even higher. New export orders rose to their highest level in two years.
The country's trade surplus with the US widen to 87.7 billion dollars so far this year, will be in focus as Trump prepares to visit Beijing for a summit in which he is expected to "promote" energy products and beans.
Meanwhile, consumer and producer inflation jumped more than expected in April, offering a reflationary boost to the economy. However, domestic demand remained weak.
The US created 115,000 jobs in April as businesses kept hiring. The figures added to expectations the Fed will keep interest rates on hold as it seeks to keep a lid on inflation.
The yuan was moving consistently above its 50 SMA, so the risk remains tilted to the upside. We expect it to rise further towards the high of 0.7872 per dollar last seen in February 2023.
Asset recap
As of market close on 8 May, among EBC major products, Micron Technology still shares led gains. They caught fire last week amid a global shortage of memory chips, with enthusiasm across the semiconductor sector.
The KOSPI charged towards 8,000, though experts warned that the surge in the index should not be interpreted as a sign that economic conditions are improving evenly across society.
Sterling jumped despite signs of political instability. UK PM Starmer reiterated on Saturday that he plans to remain in office despite his ruling Labour Party suffering among its worst local election losses in decades.
EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Peringatan: Pendapat yang disampaikan sepenuhnya merupakan milik penulis dan tidak mencerminkan posisi resmi Followme. Followme tidak bertanggung jawab atas keakuratan, kelengkapan, atau keandalan informasi yang disediakan, serta tidak bertanggung jawab atas tindakan apa pun yang diambil berdasarkan konten ini, kecuali dinyatakan secara tertulis.
- AKHIR -