|jpadvisor ||Jan 15, 2020 5:57am | Post# 21823 |
Overlook for coming days:
"European Union’s (EU) new trade chief Phil Hogan is due to meet US Trade Representative Robert Lighthizer and other American officials during a Jan. 14-16, according to Bloomberg. During the visit, Hogan will try to settle the dispute over France’s new digital services tax, European support for Boeing’s chief rival, Airbus and other differences. Experts, however, believe it won't be smooth sailing for Hogan, as both the administration and Congress are frustrated due to the EU’s refusal to negotiate with the US on agriculture, according to Politico. Hosuk Lee-Makiyama, director of the European Centre of International Political Economy in Brussels, thinks there will be a lot of fireworks before any underlying progress is made in resolving US-EU policy differences over trade. As a result, the euro is unlikely to score big gains this week.
The common currency, however, may find some love if the Eurozone Industrial Production data, due at 10:00 GMT, blows past expectations. As for Wednesday’s trading so far, the cable is consolidating the bounce from three-week lows of 1.2954 below the 5-DMA at 1.3034. The cautious market mood ahead of the US-China phase trade deal details release and thereafter the signing ceremony remains a drag on the US dollar across its main competitors. Meanwhile, the latest comments from the UK PM Johnson, denying Scottish PM Sturgeon’s request to hold another Scottish independence referendum, also keeps a check on the pound’s recovery, as it further fuels Hard Brexit concerns. Further, poor UK GDP data combined with increased BOE dovish expectations could continue to weigh. USD/JPY
had been struggling in resistance territories and was always going to struggle at these levels. We will now have to wait and see how the market reacts to the signing ceremony, which is due to take place at the White House (reportedly 11:30am NY time but not confirmed) – the devil will be in the detail. There is news that Liu He is still at the US treasury in what was supposed to be a brief talk before dinner that is going much longer than expected, a source briefed on the schedule said. Seems there could be plenty still to be ratified – any delays to the signing will surely spook markets
. Analysts at Westpac explained that representatives of both countries should talk up the importance of the deal and stress their willingness to progress to “phase two” talks on more difficult issues."